Document of The World Bank Report No. 15550HCM STAFF APPRAISAL REPORT REPUBLIC OF CAMEROON TRANSPORT SECTOR PROJECT APRIL 18, 1996 Infrastructure Operations Division Central Africa and Indian Ocean Department Africa Region CURRENCY EQUIVALENTS (as of April . 1996) Currency Unt = CFA Franc (CFAF) USSI = CFAF505 CFAF I million USS1 9140 WEIGII'S AND MltASURES Metric Systen ABBREVIATIONS AND ACRONYMS ASECNA = Agence pour la Steuritd Acricnne cn Afrique ct do Madagascar (Air Safet, Agency for Africa and Madagascar) AGCD = Agenec Gcncralc dc la Coopcration au Dcvcloppcmcnt (Bclgian Gencral Agency for Cooperation and Development) BMZ = Bundcsministenum rur Zasammcnarbcit (German Ministry for Cooperation) CAMAIR = Camcroon Airlincs CAMSHIP = Cameroon Shippiig Lines CAMTAINER = Socictc Nationalc de Transport ct de Transit du Caincroun (Camcroon Container Transport and Freght Forwardcr Company) CAR = Republique Centrafricaine (Ccntral African Republic) CAS = Contry Assistance Strategy CFD = Caissc Franraisc dc Dhselopmcment (Frcnch Developucrn Agency) CIF = Cost, Insurance Freight CNCC = Conseil National dcs Chargcurs hi Cameroun (Shippers' Council) CNIC = Chanrie Naval et Indusirtel du ti amcroun (Cameroon Dockyard) CNPS = Caisse Nutionalc dc Prcvoyanee Socialc (National Socal Secunty Fund) DhlN =Dcveloping NIaritime Nations DGTC = Direction GG&rrale des Grands Trav-a-s l Camcroun (General Directorate for Large Works ot Carneroon) DPO = Deferred P'riva-trattnn Opuon ERC = Economic Recovery Credit ESOP = Employce Stock Owncrship Program EU = European Union FAC = Fonds d'Aide et do Coop6ration (Frcnch Copecration Fund) FOB = Frec on Board 1y = Fiscal Yar GDP = Gross Domestic Product GOC =Govcmment of Cameroon IBRD = Inteniational Bank for Reconstruction and Dcvelopment ICAO = International Civl Aviatin Organizetion ICB = International Competitive Bidding IDA - Intemational D,eslopnt Association IMPF =lntenruainal Monetary Fund IRU = International Road Union LABOGENIE = Laboratoire National do Gdnie Civil (National Road Laboratory) MATGENIE = Pare National do Matericl dc Geise Civil (Equipment Pool) MC =Managemcnt Contract MINEFI = Ministerc dc I'Econrmic ct dcs Finances (Ministry of Economy and Finance) MINT = Mmnistdre des Transports (Ministry of Transport) MINTP = Ministmr dcs Travaux Publics (Muiistry of Public Works) NCB = NaLional Compctitive Bidding OECF = Overseas Economic Cooperation Fund ONPC = Office National des Pors du Cameroun (Cameroon National Port Authority) PE = Public Enterpise PIP = Public Investmet Program PPA = Participatory Poverty Analysis PPF = Project Preparation Facility PSO = Public Service Obligation REER = Rel Effective Evehange Rate RFGII:ERCAM = R&grc Natiunalc dcs Chemins do Fcr du Cameroun (Cameroon Railuays) SAC = Stnuctural Adjustment Crcdit SAL = StruCtLral Adjustment Loan SAP = Structural Adjustment Prognam SAR = Staff Appraisal Report SME = Small and Medium Entcrprisc SNH = Soci&6t Nationale d'H-drocarburcs (National Oil Company) SNI = Societe Nationale di'lnestissnmcnt (Slatc Holding Company) SOCAMAC = Sociott d'Aninagrcn,et ct do Manuaiti,on du Camcroun (Port Handling Company of Cameroon) se ruc = Socicte dc Transport Urbain du Camcroun (Urban Public Transport Company) SSATP = Sub-Saharan African Transport Policy Program TICU = Ccilule dc Coordination du Projct Sctoriel des Transports (Transport Intrmministerial Coordination tnie) TIR = Transit Inicnaitonal Roulier (Intcrnational Road Transit) TIPAC = Tr-nsit In.tcrEtats dcs Pays dc l'Afriquc Cciralc (Central African Countries Regional Transit) TSP = Transport Seetor Project TSTA = Transport Scctor Technical Assistance Project UDEAC =Union Douanirc et Ecoro.niquie de l'Afriquie Centralc (Central Africa Customs and Econoomic U iion) UNC1-AD = Umnted Nations Confrcnce om Trade and Dcvelopment FISCAL YEAR Jlilv I - Juine 30 REPUBLIC OF CAMEROON TRANSPORT SECTOR PROJECT STAFF APPRAISAL REPORT Table of Contents Page CREDIT AND PROJECT SUMMARY ............................i 1. COUNTRY BACKGROUND .1 2. TRANSPORT SECTOR INSTITUTIONAL ASSESSMENT .2 3. TRANSPORT SECTOR PROGRAM 1.. A. Program Objectives .1 B. Program Description .12 C. Sector Investment Program .21 D. Technical Assistance, Training and Seminars .25 E. Program Implementation .26 Procurement .26 Disbursements .29 Accounting and Auditing .31 Program and Project Implementation .32 Reporting and Monitoring ................ . 33 Environmental Aspects ................ 34 Program Benefits ................ 35 Program Risks ................ 40 4. IDA ASSISTANCE STRATEGY TO THE TRANSPORT SECTOR . .43 A. Lessons Learned from Past Experience .43 B. Rationale for IDA Involvement .44 C. IDA Assistance Strategy to the Transport Sector .45 5. AGREEMENTS REACHED, CONDITIONS AND RECOMMENDATION 46 This Report is based on the findings of a reappraisal mission carried out in May/June 1995 by Mmes./Messrs. Jean-Noel Guillossou (Task Manager, Transport Economist, AF3IN); Kingson Apara (Principal Project Officer, Resident Mission); Aubert Zohore (Financial Analyst, AF3IN); Abdelmoula Ghzala (Highway Engineer, AF31N); Gerard Paget (Highway Engineer, AFTES); Karim-Jacques Budin (Railway Specialist, TWUTD); Marc Juhel (Port Specialist, TWUTD); Patrick Bultynck (AFTES, Urban Transport Specialist); Ellis Juan (Private Sector Development Specialist, CFSPS); Claudine Morin (Lawyer, LEGAF); and Hakan Wilson (PSD). Mr. Ian Heggie (TWUTD) is Lead Advisor; Ms. Sunita Kikeri (PSD), Ms. Brigitta Mitchell (AF41N) and Mr. Hans Peters (TWUTD) are Peer Reviewers. Ms. Maryvonne Plessis-Fraissard (AF3IN) is the Division Chief. Mr. Andrew Rogerson (AF3) is the Department Director. Table of Contents SCHEDULES Page 1. Letter of Sector Policy and Matrix of Actions .............................................................. 49 2. Benefits resulting from the Privatization/Liquidation of Transport Public Enterprises .................. 60 3. Action Plan and Timetable for the Transit Component of the UDEAC Transport Reform Program .............................................................. 61 4. Action Plan to Overhaul the Customs System .............................................................. 62 5. National Port Authority's (ONPC) Investment Plan .............................................................. 65 6. Status of Implementation of the Transport Sector Technical Assistance Project ........................... 66 7. Detailed Project Costs .............................................................. 68 8. Outline Terms of Reference of Technical Assistance .............................................................. 72 9. Training .............................................................. 77 10. Project Implementation Schedule .............................................................. 79 11. Project Performance Indicators .............................................................. 84 12. IDA Supervision Plan .............................................................. 85 13. Economic Evaluation of the Overall Road Maintenance Program ................................................ 86 14. Economic Evaluation of the First-year Road Maintenance Program ............................................ 88 15 Economic Analysis of the Rural Transport Infrastructure Program ............................................. 90 16. Economic Evaluation of the Rehabilitation of the Access Channel to the Port of Douala .............. 92 17. Financial Evaluation of ONPC .............................................................. 95 18. Selected Documents in the Project File .............................................................. 99 MAPS IBRD No. 24837 and 24838 (Priority Road Network) IBRD No. 24029 (UDEAC Infrastructure Communications Network) Credit and Project Summary i REPUBLIC OF CAMEROON TRANSPORT SECTOR PROJECT CREDIT AND PROJECT SUMMARY Borrower: Republic of Cameroon Guarantor: Not Applicable Implementing Agencies: Ministry of Economy and Finance Ministry of Public Works Ministry of Transport Transport Interninisterial Coordination Unit Beneficiary: Not Applicable Poverty: Program of Targeted Interventions Amount: SDR 41.7 million (US$ 60.7 million equivalent) Terms: Standard IDA terms with a maturity of 40 years Commitment Fee: 0.50% on undisbursed credit balances, beginning 60 days after signing, less any waiver Onlending Terms: Not Applicable Financing Plan: See para. 3.41 Net Present Value: Values below are given for new projects only but not for on-going projects included in the sector investment program. Economic Rate of Retum of the road maintenance strategy applied to the overall priority network: above 100 percent. Economic Rate of Return of the road rehabilitation program financed by IDA: Rehabilitation Program Paved Roads Earth Roads 74% 52% 100% Economic Rate of Retum of the Rural Transport Infrastructure Maintenance Program: above 12 percent. Cameroon - Transport Sector PrograMi Net Present Value discounted at 12 percent of the rehabilitation of the access channel to the port of Douala 23 - Cost of Maintenance s1 Dredging j -i- D/ \\ MCFAF2,0001m3 = 13 ~~~~~~-U-CFAF2,600hm3 3ji . . . § ---CFAF3,000/m3 3 6.5 7 7.5 8 8.5 Channel Depth (m) Staff Appraisal Report: Report No. 12451 -CM Maps: IBRD No. 24837 and 24838 (Priority Road Network) IBRD No. 24029 (UDEAC Infrastructure Communications Network) Project ID Number: 393 Chapter I - Countpy Background I REPUBLIC OF CAMEROON TRANSPORT SECTOR PROJECT STAFF APPRAISAL REPORT 0.1 Chapter 1 presents the country background to place the proposed project in the context of past and current economic adjustment. Chapter 2 presents the transport sector institutional assessment. Chapter 3 describes the reform program prepared by the Government, as of mid-1995, to address the issues identified in the sector institutional assessment. The chapter also presents the sector investment program, provides the reform and investment programs' benefits and risks, including those related to environment, and the programs implementation arrangements. Chapter 4 proposes the IDA's assistance strategy to the transport sector in Cameroon based on lessons learned from Bank Group involvement in Cameroon. Chapter 5 lists the agreements reached. Figures in the report derive from studies carried out to prepare the project. 1. COUNTRY BACKGROUND 1.1 Throughout the 1970s and until 1985, Cameroon registered an average real growth rate of about 8 percent per annum. Production of oil, which accounted for about 45 percent of Government revenues, was a major factor of growth. Three external shocks, starting in 1985-1986, revealed the fragility of the oil- dependent economy: decline in external terms of trade (coffee, cocoa and oil), depreciation of the dollar, and decline in oil production. As a result, the economy and living standards started to deteriorate in 1986- 87. Per capita income declined by 55 percent between 1986 and 1993. The population living in poverty increased from 40 percent of households in 1983 to 48 percent in 1993. To reverse this decline, the Government launched a first Structural Adjustment Program in 1989 supported by a World Bank Structural Adjustment Loan (SAL1, Ln. 3089-CM, June 1989). In the absence of a real depreciation of the CFA franc, however, these efforts proved ineffective. As a result, the economy contracted by an average 5.3 percent per annum between 1990-91 and 1992-93. Per capita income decreased by an average 8.6 percent per annum over the same period. 1.2 The CFAF devaluation in January 1994 created a pre-condition for the resumption of positive real growth and an improvement in the country's external competitiveness. In parallel, the Government implemented the Central Africa Customs and Economic Union (UDEAC) tax and tariff reform to simplify the tariff structure and eliminate all remaining quantitative restrictions on merchandises imports. However, without deepening of the adjustment effort, the economy did not fully benefit from the devaluation. As a result, Cameroon's long-term development has continued to be plagued by three main constraints: (a) a fiscal crisis with inadequate resource mobilization, poor quality of public expenditure and a crippling internal debt; (b) an external debt overhang with, in 1994, the external debt service accounting for 63 percent of total Government revenues, or, taking into account payment arrears, total debt service accounting for 111 percent of Government revenues; and (c) uneven ownership and commitment to the adjustment agenda. 1.3 Since early 1995, the Government has clearly demonstrated its commitment to reverse past trends. All outstanding undertakings agreed under the Economic Recovery Credit (ERC) financed by IDA and due for implementation by December 1995 have been completed. The Head of State announced additional adjustment measures such as: (a) acceleration of the privatization program including utilities; (b) improvement of the privatization procedure under the auspices of a committee at the Presidency responsible for ensuring transparency; (c) making the preshipment inspection company responsible for customs duties assessments and monitoring of actual collection; and (d) imposition of sanctions on civil servants guilty of corruption or embezzlement. In line with IDA or IMF concems, the FY96 Finance Law contains a series of revenue-raising measures as well as increased budget allocations to development sectors such as education and health. As a result, the IMF concluded negotiations of its Standby Agreement. A letter of intent was signed on August 1995. A new Structural Adjustment Credit (SAC) in the amount of US$150 2 Transport Sector Project million was approved by the Board of the Association on February 8, 1996, and became effective on February 22, 1996. 2. TRANSPORT SECTOR INSTITUTIONAL ASSESSMENT 2.1 This chapter assesses the transport sector issues as identified in the Transport Sector Strategy Memorandum (Report No. 11430-CM, June 30, 1993) with data updated as of fiscal year 94. The memorandum was prepared after long discussions with public and private sector stakeholders and its recommendations were the basis of the transport sector reform program adopted by the Government in 1995 and presented in Chapter 3. Since the report was completed, the Government has started to restructure the transport sector and has launched several actions. These recent developments have not been taken into account in the following description of the transport sector issues to maintain consistency with the reform program presented in Chapter 3 as well as for the sake of comparing 1993 and 1995 and evidencing the Government commitment to the reform of the transport sector. 2.2 Overall Sector Performance. Weak management of institutions and an unsatisfactory regulatory framework have caused the transport sector to have a major negative impact on the overall economy, especially for the poor for which poor transport infrastructure has become one of the major impediment to their participation in economic development. The Government gave priority to investment and to protection of PEs. As a result, transport infrastructure has lacked maintenance and PEs have drained scarce State resources. The consequences are a lack of competitiveness within the transport sector, the running down of existing assets, and a lack of resources for investment. 2.3 Impact on the Poor. Improvement of transport infrastructure, particularly main roads and farm- to-market roads, was one of the priority actions identified during the national workshop on poverty held in Cameroon in November 1994. In the South-West province, 86 percent of the people interviewed during the Participatory Poverty Analysis (PPA) carried out in 1994 indicated that poor transport was the major cause of poverty. Many of the problems of the poor were found to be compounded by the limited or non-existent road infrastructure which cut off many villages or make some inaccessible for up to four months during the rainy season, which is the time of high agricultural activity (Figure 1). Limited mobility, especially in rural areas, greatly reduces inter-village and ruraL/urban trade and commerce. The absence of efficient communication facilities in their regions in general means that the poor have to pay proportionally higher prices for travel. 2.4 Physical isolation also is a factor of economic and social isolation. Women in a village on a main road with direct access to wholesalers were able to spend more time producing food to sell and made an average income of US$570, more than twice the US$225 income earned by women in an isolated village located 1.5 hours from the main road. Poor transport infrastructure makes access of women to transport even more out of step with their transport responsibilities embedded in the gender division of labor. 2.5 Poor transport infrastructure also contributes to food insecurity in poor rural areas by hampering movements between areas of surplus and areas of shortage, as well as making transportation costs so high that movements in relative prices required to stimulate the transport of food to areas of shortage become so large that many of the poor in afflicted regions cannot afford marketed food. During the PPA survey, a respondent who sells foodstuffs in the Northern province pointed out that plantains selling for CFAF 500 in Yaounde would cost CFAF 2,000 in Maroua, due principally to transportation costs. Poor urban transport infrastructure is also a major constraint for the poor who have to walk on long distances to access urban transport services in addition to the proportionally higher prices for travel that they have to pay to use these services. Chapter 2 - Transport Sector Institutional Assessment 3 Figure 1: Impact of Poor Infrastructure on the Rural and Urban Poor Health Lrvices Education Roads impassable during rainy season Isolation - teachers do not High cost of transportation to want to work in isolated/ health centers cut off areas Parents cannot afford transportation fees. Econimic Production Agricultural Production . Roads in poor condition limit flow No markets for products of goods and services and trade High transportation costs between commercial centers and Hard to get inputs neighboring states . Difficult access to farms . High transportation costs translated High transportation costs into high transaction costs deter agricultural extension workers Gender Limited mobility for women especially during the rainy season 2.6 Weak Sector Management and Institutions. Sector ministries are overstaffed and have interfered negatively with PE management and decisions on staffing, operations and investments. The Government institutions involved are the Ministry of Public Works (MINTP), with about 6,700 employees, and the Ministry of Transport (MINT), with about 880 employees. MINTP runs an inefficient, unaccountable road maintenance system driven by force account. MINT's role is to oversee transport PEs, but instead, it has interfered with their management, hindering both their autonomy and performance. MINT initiates and supervises regulations for road, rail, air, and transit and maritime transport. It also oversees the Shippers' Council (CNCC), which controls the distribution of Cameroon's maritime traffic under the United Nations Conference on Trade and Development (UNCTAD)'s Code of Conduct (40-40-20), negotiates liner conference tariffs, and represents Cameroonian shippers' interests. 2.7 The functions of the Directorate of Large Works of Cameroon (DGTC), which has about 110 employees, overlap with those of the other sector institutions. DGTC is a public enterprise under the tutelage of the Prime Ministry. DGTC serves as a secretariat to the National Tender Board on procurement decisions. Until the 1994 restructuring, it also prepared and supervised large works, including road civil works. DGTC has given priority to investment to the detriment of maintenance. Road investment has not been coordinated between DGTC and MINTP. DGTC has not achieved its objectives of reducing construction costs and making enterprises comply with contractual time stipulations. The Government has not allocated resources to DGTC since 1993. DGTC's revenues have derived from civil works contracts, which caused lack of transparency and conflict of interest. In March 1994, DGTC's debt to suppliers, employees, the Social Security Fund and the Government amounted to US$3.5 million. The country procurement review carried out by IDA in 1993, qualified the local procurement procedures as critically deficient because of little transparency in bid evaluation and award of contracts, resulting in long procurement processing and high costs. In June 1995, the Government adopted a new national procurement code in consultation with IDA and procurement procedures have been decentralized. Technical ministries and PEs are autonomous for procurement activities below about US$1 million equivalent for works, US$0.6 million for goods, and US$0.4 million for consultants. 4 Transport Sector Project 2.8 Unsatisfactory Regulatory Framework. The current framework is an obstacle to effective competition in some transport subsectors: (a) Civil Aviation: Although the regulatory framework is overall satisfactory, its provisions are not applied consistently. The Government intervenes in CAMAIR's operational management. Other domestic companies were authorized in 1994 to operate regular or charter flights within Cameroon and between Camneroon and neighboring countries, but the Govemment is unwilling to allow competition between these companies and CAMAIR. Regional and international air cargo services are not developed, although the market does exist. High aviation fuel prices in Cameroon due to local taxes impede civil aviation development. (b) Interurban Road Transport: A bureau of freight was created in 1994 to control the distribution of transit traffic to Chad and the Central African Republic between Cameroonian, Chadian and Central African transporters. The Shippers' Council, the railway company and the road transport associations participate in the bureau. This is likely to reduce sector efficiency and increase transport costs. The road taxation system is complex and cumbersome, with about 15 taxes collected at different stages, by different institutions. Tax revenues are insufficient. Road transport benefits from the price structure for petroleum products which does not promote competition and does not encourage petroleum companies to use the least-cost mode of transport. The regulation to control axle loads is not applied. Road insecurity increases. (c) Maritime transport: The negotiations of tariffs between shipping lines and the shippers' council have kept tariffs at the same official level for several years, although they have decreased in the rest of the world on average by an annual 4 percent between 1980 and 1992, and by an annual 7 percent since 1989. These negotiations and confidential rebates proposed by the shipping lines result in lack of transparency in the transport market. The current regulation protects the national shipping lines, and its application causes delays and increases costs of international maritime transport, thereby impeding the country's competitiveness. A background note on maritime transport regulation in sub-Saharan countries can be found in the Technical Annex of the Staff Appraisal Report (SAR) of the Transport Sector Technical Assistance Credit (SAR No. P-6559-CM) presented to the Board on April 11, 1995. 2.9 Non-Performing Transport Sector Public Enterprises. Seven PEs are under the jurisdiction of MINT: the national airline (CAMAIR), with about 1,600 employees; the railway company (REGIFERCAM) with about 3,600 employees, operating about 1,000 km of railways; the urban bus company (SOTUC) with about 1,050 employees, operating bus lines in Yaounde and Douala until February 1995; the national shipping line (CAMSHIP) with about 270 employees, including 80 sailors; the national freight forwarder and road transport company (CAMTAINER) with about 200 employees; the National Port Authority (ONPC) with about 1,000 employees, managing Cameroon's main port at Douala and three secondary ports, and the national dockyard (CNIC) with about 130 employees, operating a maritime workshop and dry-dock. Two PEs fall under the jurisdiction of MINTP: the equipment pool for road maitenance (MATGENIE) with about 400 employees, and the road laboratory (LABOGENIE) with about 440 employees, which controls the norms and standards of road and building construction, and carries out research. 2.10 Six out of nine transport sector PEs are bankrupt and drain huge resources from the State budget. The transport sector PEs' debts and arrears severely constrain the State Treasury. At the end of FY93, direct subsidies needed to cover transport PEs' deficit amounted to US$55 million, equivalent to 8 percent of the State revenues. About US$240 million of subsidies had been allocated to transport sector PEs Chapter 2 - Transport Sector Institutional Assessment 5 between FY90 and FY92, of which 84 percent to CAMAIR. As of 1994, the total domestic debt for the nine sector PEs amounted to CFAF 122 billion, US$236 million equivalent (Table 1). This accounted for about 24 percent of the total debt of the 34 major PEs in Carneroon, 6 percent of the total domestic debt and 3 percent of the gross domestic product. REGIFERCAM, CAMSHIP and SOTUC are the most important debtors to the State among transport PEs. Transport PEs owe US$74 million to the State, which accounts for 19 percent of the total PE debt due to the State. SOTUC, MATGENIE, ONPC and LABOGENIE are the most important creditors of the State among transport PEs. The State owes US$93 million to these enterprises which accounts for 22 percent of the total State's debt due to PEs. Table 1: FY94 Short-term Debt of Transport Public Enterprises (CFAF billion) SOTUC CAMSHIP ONPC CAMAIR REGIFER LABO- MAT- CAM- TOTAL 1994 1994 1994 1994 -CAM GENIE GENIE TAINER 1994 1994 1994 1993 Arrearsonsalaries 5.0 0.0 0.1 0.5 0.3 1.9 2.7 0.0 10.5 Fiscal arrears 4.7 0.2 0.0 5.1 4.0 1.3 1.0 0.0 16.3 Arrears on Social Security 4.6 0.0 0.6 13.7 8.0 2.3 2.2 0.0 31.4 Bank overdrafls and arrears 6.7 0.0 0.0 8.9 6.8 1.8 0.2 0.0 24.4 Local suppliers 3.6 1.1 2.7 3.6 2.0 1.2 0.8 1.9 16.9 External suppliers 0.0 0.7 0.0 3.5 0.0 0.0 0.0 0.0 4.2 Other debt and arrears 0.3 0.0 11.5 6.3 0.0 0.0 0.5 0.0 18.6 Total 24.9 2.0 14.9 41.6 21.1 8.5 7.4 1.8 122.2 2.11 In 1993/94, CAMAIR had an estimated debt of about US$78 million, with arrears of about US$55 mnillion, and a negative net worth of US$20 million, against assets of US$50 million. On the basis of projected operating losses and debt service requirements, the company would need an annual US$10 rmillion subsidy to continue, and still be unable to renew its equipment when it reaches the end of its economic life in five years. Financial and operational management is poor and lacks transparency. Fraud is widespread. The company is overstaffed by about 800 employees. CAMAIR operates one B-747, and two short haul carriers (B-737) for regional and domestic flights, after one crashed in 1995. 2.12 Several attempts to restructure the company failed because the Government interfered with management, in particular with respect to staffing decision. The company maintains the presidential fleet without being paid for the service, and civil servants use CAMAIR without the Government paying for all tickets. The agreements under the performance contract concluded between the Government and CAMAIR as part of the Structural Adjustment Loan (SAL1) conditionalities were largely unfulfilled. The agreement to prepare a sale and lease-back arrangement for CAMAIR's long haul carrier (B-747), signed by the Minister of Finance under the SAL, was rescinded by the President of Cameroon. Despite the appointment, in October 1992, of a Director-General from Air France, which is a minority shareholder (25 percent), the situation has started only recently to improve, thanks to the devaluation of the CFAF franc. Since 1992, when Air France purchased UTA, the former French airline which serviced Cameroon, Air France's participation and technical assistance entail a conflict of interest as the airline competes with CAMAIR on the Douala-Paris line. 2.13 REGIFERCAM's long-term debt (mostly in foreign currency) stood at about US$75 million equivalent on June 30, 1994. Arrears to various bilateral donors, suppliers, and local banks amount to about US$40 million equivalent. Arrears to the Social Security system amount to about US$15 million. During FY93, the enterprise incurred an operating loss, before subsidies, of about US$20 million (down from about US$52 mnillion in 1988). Growth of log and timber traffic in 1994 has improved the cash-flow situation but the long-term situation remains the same because of the importance of the debt. The company plays an important role in domestic freight and transit transport. Logs, wheat and flour, petroleum products, cotton, and transit goods are the largest items using railway services. The construction of the pipe line between Chad and Cameroon should boost rail transport during the next two years. In addition, 6 Transport Sector Project the company provides passenger services to and from Northern Cameroon (at 620 km from Yaounde and 880 km from Douala), which is linked to other regions by an earth road in poor condition. 2.14 The company made substantial efforts within the framework of the performance contract signed with the Government under the SAL in 1989. The management has been more commercially oriented and has full autonomy to set tariffs and negotiate contracts. The number of employees was reduced from 6,350 to about 3,600. REGIFERCAM concluded agreements with the State on compensation for operating unprofitable passenger transport services under public service obligations. Some auxiliary activities were privatized. But Govemment still interferes with some management and procurement decisions, therefore limiting the potential for further efforts which would be required in view of the still weak financial situation of the company. 2.15 SOTUC, which owned 229 buses (107 in Yaounde and 122 in Douala), has been unprofitable since its creation. In 1994, only about half of its buses were operational, and this number was rapidly dwindling because of lack of maintenance. In FY93, SOTUC's net loss amounted to about US$7 million equivalent, with a tumover of US$4 million. By June 30, 1993, its negative net worth amounted to about US$56 million equivalent, against assets with a book value of US$12 million. Its arrears to banks, employees, suppliers, the Treasury, and the Social Security system amounted to about US$45 million. The Govermment's policy of maintaining a high number of staff, insisting on operating uneconomic routes, and setting preferential tariffs for certain segments of the population has been the principal cause of SOTUC's failure. It would have cost the State about US$7 million annually to continue operating SOTUC over the next few years. A perfomance contract signed under the SAL was never implemented. In 1994, because salaries had not been paid for more than one year, the company had been de facto taken over by its employees who ran the buses for their own account. 2.16 In 1993, SOTUC's market share was less than 5 percent of total urban transport, which is very low compared, for example, to 22 percent in Conakry and 41 percent in Abidjan for similar public bus transport. The police and military accounted for 28 percent of SOTUC's passengers, but only 8 percent of its revenues. Students also paid reduced fares or no fare at all. The Govemment never fully compensated SOTUC for the deficit caused by public service. Between 1986 and 1991, passenger volume dropped from 152,000 per day to 44,000, a decline of 70 percent in five years. Most urban trips were then done by private vehicles, by taxis or by foot. Until 1994, the taxi fleet was estimated at about 5,000 in Yaounde and 5,500 in Douala. It is now shrinking and the condition of vehicles is deteriorating quickly after the devaluation. Transport tariffs cannot be increased because the revenue per capita decreased significantly following salary reductions in 1993. The cost of spare parts and new vehicles is now too expensive for owners to maintain or renew the fleet. The share of the population walking is now estimated at around 40 percent. 2.17 CAMSHIP is recovering from several years of poor efficiency and weak management due to political interference. Until FY89, CAMSHIP made profits of about US$6 million on sales of about US$80 million. In 1991, its operating loss reached US$4.4 million, which increased to US$6 million before taxes in 1992. Its working capital was negative by US$1 million in 1991. CAMSHIP owns two vessels and charters ships for petroleum and clinker. In June 1993, net equity stood at below 75 percent of the company's initial capital, thus implying bankruptcy. The company's liquidation value was estimated at US$20 million in 1993, below its cash-flow of US$32 million, calculated on a net present value basis of 20 years at the 20 percent annual interest rate prevailing in Cameroon. 2.18 CAMSHIP's debt was substantially restructured in an amount of US$21 million in a convention concluded with the State in September 1993. The Government agreed to: (a) transfer to the State the additional US$11 million debt incurred in the purchase, arranged by the Government, of two vessels at above market value; and (b) reschedule over eight years the remaining bilateral debt due by CAMSHIP, and assume that debt. As a result, the June 30, 1995, balance sheet shows a profit. However, this Chapter 2 - Transport Sector Institutional Assessment 7 agreement was not signed by the private shareholders of CAMSHIP, who do not agree to participate in the capital increase as intended in the agreement. In addition, the company remains burdened by its lead share (27 percent, US$2.6 million) in a real estate holding (SIMAR) created by the Government to build a maritime office building, which has substantial arrears on its mortgage payments (US$13 million). The mortgage banks could call the entire loan balance. Besides being a financial burden on the State Treasury, the company impacts adversely on the maritime sector's efficiency and competitiveness and on the country's economy. This is because application of quotas to shippers under the UNCTAD's Code of Conduct results in high transport costs due to the absence of competition between shipping lines servicing Cameroon. In addition, delays in transport operations arise from cumbersome procedures created by the efforts of Cameroonian authorities to allocate its full quota of traffic to CAMSHIP. The Government considers that the presence of CAMSHIP increases competition. 2.19 CAMTAINER is heavily leveraged with an 87/13 debt/equity ratio, and has insufficient revenues to meet debt service obligations. As a result of competition with other companies and its overdesign at its creation, CAMTAINER has been unable to recover the cost of the initial investment and is unprofitable. In early-1995, its foreign partners (45% German and Danish institutional investors) agreed to debt-relief to improve the company's cash-flow. 2.20 ONPC breaks even, but at much too high costs and tariffs, and without providing efficient services. Expenditures are estimated at one third above the normal level for the services rendered, because of overstaffing and past over-investment. ONPC's management lacks both autonomy and accountability. ONPC has been unable to maintain the access channel, whose depth was reduced from 7.2 m after rehabilitation in 1989, to 5.4 m in 1992. Until 1995, the investment policy was not based on financial return and capacity to service the debt. ONPC was considering an unrealistic five-year US$275 million investment program, the equivalent of 40% of overall Government investment, to finance a new dredger, a new container terminal, the rehabilitation of the channel and construction of calibration dikes, the rehabilitation of the Douala port infrastructure, the renovation of secondary ports, and the construction of two deep-sea ports. This plan was supported by the Government for political reasons, but the financing was not available for its most important components. In FY93, salaries increased by 12 percent, although port traffic remained the same than in FY92. 2.21 ONPC's tariffs are set arbitrarily and do not reflect costs. The implementation of the analytical accounting system and the management information system, which would provide the basis for a more accurate calculation of tariffs, has incurred long delays and is not yet completed. ONPC increased its tariffs for ships up to 300 percent after devaluation, and intends to increase its other tariffs on goods. ONPC revenues totaled US$33 million after devaluation, down from US$48 million before devaluation, and were obtained from ships (piloting, tug boat services, occupation of berth space) for about US$18 million, from goods for US$8 million, from renting-out warehouses and port space for about US$6 million, and from non-port activities, such as the production and sale of ice, utilities and other items. The net operating income ranged between slightly positive and slightly negative during the FY89-94 period. However, until 1993, ONPC experienced serious liquidity shortages due to partial transfers of port revenues from the Treasury to ONPC on port dues collected by customs. A substantial portion of ONPC's costs were derived from short-term bank lending to cover the shortfall, amounting to about 30 percent of ONPC's revenues. At the end of 1993, the Ministry of Economy and Finance agreed to let ONPC collect these revenues itself. 2.22 CNIC is subsidized by using the dry-dock without amortizing it in its accounts, and not paying a lease to the State as the owner. It is reasonably well managed, but tends to seek Government's assistance and favored treatment for work orders. Its development plan is not consistent with its financial capacity to service the debt, and CNIC expects the Government to cover the financing gap. In 1994, CNIC's tariffs became more competitive because of the devaluation. The balance sheet has continually improved since the creation of the dockyard, and showed profits for FY94. 8 Transport Sector Project 2.23 MATGENIE has faced a liquidity crisis for several years because of accumulating Government debts for services rendered in road construction and maintenance. In 1993, the Government's outstanding debt amounted to US$25 million. The company was overstaffed by about one third. Unpaid salaries for more than one year led to low morale and strikes. The Government and MATGENIE's management took measures to improve the situation in 1994, when a new manager was appointed and a restructuring plan prepared. The plan was implemented in September 1994 with a new administrative chart and staff reduction by about 50 percent, equivalent to 40 percent of the total salary bill. Also, the management reduced salaries by 10 percent in January 1995. 2.24 Although LABOGENIE monopolized defacto road laboratory works in Cameroon until recently, its financial performance has deteriorated. Arrears from the Government, which was the only client, amount to US$7 million. Due to external donor pressure, the market was opened to competition, and LABOGENIE has benefited from externally-financed contracts, reducing its dependency on Government financing. However, the volume of road construction works has severely decreased, thereby strengthening the need for restructuring the company. Although LABOGENIE's staff was reduced from 821 to 526 in 1991 and 443 in 1996, the company remains overstaffed. With the Bank's assistance under the Sixth Highway Project (Loan 2584-CM), financial management and commercial orientation have improved. 2.25 Investnents Opportunities Poorly Apprehended. Sector investments were oversized and did not take recurrent costs into account. The Public Investment Program (PIP) has not reflected sector priorities or been based on economic criteria and availability of local funds. For example, a new airport built in Yaound6 for 1.5 million passengers per year is used by less than 100,000 passengers. In Maroua, the airport's rehabilitation is incomplete due to a lack of funds. Meanwhile, the main airport in Douala, with about 400,000 passengers per year, is not maintained and is deteriorating. In 1992-1993, the Government sought financing for a new four-lane expressway between Yaounde and the new airport, while it lacked the funds to maintain the road network. Until 1995, the port authority of Douala gave priority to the modernization of the container terminal with expensive, sophisticated cranes, while the access channel to the port was insufficiently dredged. A 6 billion CFA dry-yard, purchased in 1988, is used well below its capacity because the demand for ship repair is low, and the dry-yard is located in shallow waters which limit its operating capacity. Finally, several investments in the transport sector were begun but not completed for lack of financing, resulting in the loss of what had been executed. 2.26 Insufficient Maintenance of Existing Infrastructure. During the past ten years, priority given to investments has resulted in neglect of transport infrastructure maintenance. In addition, several weaknesses hamper maintenance: (a) Poor management. Procedures do not exist to establish consistent annual objectives and monitor the performance of maintenance units. This results in inefficient use of force account for routine and periodic road maintenance, and the maintenance of the access channel to the port of Douala. (b) Weak institutions. The institutional framework has never encouraged accountability within the institutions responsible for maintenance, nor from these institutions to the Government, nor from the Government to infrastructure users beyond the budget procedure. (c) Poor funding procedures. The local budget for road maintenance is insufficient due to the State budget crisis which barely allows for payment of salaries to civil servants. The port does not have a specific funding procedure for the maintenance of the channel and gives priority to the payment of salaries. Chapter 2 - Transport Sector Institutional Assessment 9 (d) Inadequate donor strategy. Until recently, donor assistance focused on investments rather than maintenance. 2.27 Although ONPC's (National Port Authority) dredging crew has technical capacity, the current institutional framework in which ONPC's dredging departrnent operates, and the technical constraints of its dredger, make it impossible for ONPC to satisfactorily perform such dredging. The dredging performance has rapidly declined since 1988 when the contract with foreign expertise was terminated. This contract provided for rehabilitation and maintenance of the 22 km long access channel through the Wouri river, from the sea to the port of Douala. Heavy siltation of the Wouri river has reduced the depth of the channel from -7.5 m after rehabilitation, to about -5.4 m at the end of 1992. Shipping lines are forced to enter and depart with reduced loads, and to spend costly idle time at the quay or at the channel entrance awaiting high tides. CAMSHIP's vessels depart with about 3,000 tons below load capacity. In 1993 and 1994, following the dredger's overhaul and donor pressure, the channel depth was increased to about -5.9 m, but is still well below the minimum of -6.5 m needed for satisfactory port performance. 2.28 The low productivity of road maintenance is caused by inefficient planning and management, slow budgeting and payment procedures, non performiing force account teams, defective equipment and, for the past three years, a lack of financing. MINTP has insufficient knowledge of the status of the road network or the actual cost of maintenance. The 4,054 km of paved road network is mosdy in fair condition because it is relatively recent and has been well maintained with German assistance until 1992, but is now beginning to deteriorate. The 17,289 km-long earth road network is now mostly in poor to very poor condition. During FY93, only some 6,000 km of roads were maintained, while maintenance almost ceased in FY94. In 1990-1991, the availability rate of equipment leased by MATGENIE to the Department of Highway Maintenance was only 56 percent. The rate has since decreased because of MATGENEE's lack of maintenance of equipment. 2.29 The poor condition of the rural transport infrastructure is due to the ad-hoc consideration that has been given to its development. Thousands of km of roads were constructed as part of rural development, agricultural or other projects without a common strategy, consultation with appropriate road agencies and due consideration to maintenance requirements after construction. The 28,000 km-long rural transport infrastructure, which has not been maintained for several years because of lack of financing, is now in very poor condition, and will need to be rehabilitated or rebuilt. About 12,500 km of rural roads are under MINTP's responsibility. Although MINTP's budget includes some funds for rural transport infrastructure, priority is given to the primary road network and almost no maintenance works are executed on rural roads. The remaining rural roads (15,500 km) fall under the responsibility of local governments or communities and agricultural development companies. Local governments or communities do not have fiscal autonomy and do not have resources to maintain the rural roads. They were rarely involved in the decision to build these roads. Agricultural development companies have built about 10,000 km of rural roads. Some were transferred to MINTP and some are still maintained by the companies. The agricultural development companies also maintain some rural roads under MINTP's responsibility, as well as some primary roads. Village and farm access tracks are unaccounted. Their construction and maintenance is the sole responsibility of villagers. 2.30 The weak fiscal situation and priority given by the Government to the payment of salaries and to the service of the external debt are the reasons for the lack of financing for road maintenance. In 1993/1994, total government revenue amounted to US$650 million against US$1,245 million of planned expenditure. Salaries and the service of the external debt accounted for US$1,000 million, 50 percent more than Government revenue. Although the Government has acknowledged that road maintenance is the second priority after salaries in the allocation of resources, it has been unable to make the necessary resources available. In 1985/1986, about US$100 million, excluding salaries of MENTP staff, were allocated from local and external resources to the road subsector for routine and periodic road maintenance, including some openings of feeder roads. In 1991, this allocation was reduced to about US$27 million. 10 Transport Sector Project That year, the shortfall in the annual volume of maintenance works (i.e., the difference between road maintenance expenditure necessary to maintain the entire network and the amount actually spent) was estimated at USS144 million. In 1992-1993, the actual amount spent for routine and periodic road maintenance was about US$10 million. Salaries amounted to about US$7 million in 1993-1994. In comparison, the fiscal revenues collected from the transport sector were estimated at US$130 million in 1993-1994, about 20% of government revenue. US$60 million (46 percent) were collected from taxes specific to the transport sector, of which US$53 million from taxation on petroleum products. Table 2 details the discrepancies between revenues collected form the road sector and financial requirements for road maintenance. Table 2: Tax Revenues Collected from the Road Sector and Maintenance Requirements CFAF million. FY95 Total Urban Roads Paved Roads Earth Roads Revenues from specific taxation 32.0 18.3 7.8 6.0 Revenues from common taxation 35.6 15.3 11.1 9.2 Total revenues 67.6 33.5 18.9 15.2 Maintenance requirements 26.7 7.7 7.2 11.7 2.31 Lack of Competiveness. The costs caused by weak port management, protection of the national shipping line, together with the inadequate legal, fiscal, and regulatory framework, and poorly maintained nfrastructure, aggravate Cameroon's lack of competitiveness in transit transport, both within the country, as well as to and from the neighboring hinterland (Chad and Central African Republic-CAR). Before devaluation, the cost of road transport was high (about four times the cost in Pakistan and twice the cost in France) and hindered the competitiveness of export products of the Central African countries. The many cumbersome customs regulations to control evasion of customs duties cause delays in transit. In spite of these regulations, about half of the customs revenues are lost because of fiaud and an inefficient bureaucracy. Financial transactions associated with clearing and transiting import freight into and out of the region significantly increase the cost of transit transport. Transaction costs paid by transit and transport operators to customs and police agents to ease transit operations range between 6 percent and 29 percent of land transport for a 15-ton container in transit to CAR and Chad. According to IMF data, the cost of regional non-factor services on imports in 1992-1993 was 16 percent for Cameroon, 39 percent for Chad and 31 percent for the Central African Republic. 2.32 The main obstacles in the transit chain are summarized below: (a) Freight-forwarders charge 1.25 percent of the shipment's value to shippers to cover posting a bond, although the actual cost of the bond charged by a bank is 0.25 percent per quarter. (b) Premiums for transport insurance must be paid to local insurance companies which have insufficient resources and competence to settle damages, and are also often paid to foreign companies. (c) The signature of customs documents by the Minister of Finance is compulsory for transit of "sensitive" goods (textiles, alcoholic beverages, goods produced in Cameroon at higher than world market prices). (d) Customs escorts are compulsory for transit transport until the border, at the cost of the importer, to ensure that goods exit Cameroon. 2.33 Lack of security in the port of Douala also impedes Cameroon's competitiveness for transit traffic and increases port transit costs. Port facilities and areas are openly accessible to non-authorized persons, as check points are not efficiently manned. The presence of the administrative offices of Customs in the center of the port generates uncontrolled traffic. Police do not effectively control the port area. Pilferage is common during unloading of general merchandise, and containers selected by Customs for inspection are often found vandalized thereafter. Although ONPC is legally empowered to protect the port against theft Chapter 3 -Transport Sector Program 11 and disorder, it shifts the responsibility to the Government. The port handling companies have made their own private arrangements at additional costs for the goods. 3. TRANSPORT SECTOR PROGRAM 3.1 The Government has developed an overall transport sector program to complete the adjustment of the sector institutions and address the financial issues in the sector. It has been designed to replace the past project-by-project approach with a sustained process of sound sector policy making and rational investment decision tied to Cameroon's macroeconomic performance and absorptive capacity. The program was established after a 4-year consultation process with sector stakeholders: (a) A thorough analysis of all transport subsectors was carried out in close association with the Government to arrive at a broadly internalized consensus on sector issues and the need for reform. The analysis was translated in a Transport Sector Strategy Memorandum (Report No. 11430-CM, June 30, 1993). (b) Several seminars were organized to involve pluri-disciplinary groups of public and private sector representatives to discuss sector issues, formulate policy measures and outline a new sector reform program. (c) An interministerial group was created to foster inter-ministerial concurrence, prepare a draft reform program including a matrix of action for discussion within their own ministries, and produce a truly internalized program. (d) Several donors meetings were organized by the Government to keep the donors informed on as well as discuss with them the transport sector reform program. Meetings internal to the donors' community were also held to forge closer alliance among donors and adopt a common approach. 3.2 Section A describes the overarching program objectives. Section B details the reform program and its implementation timetable. Section C presents the investment program which will be executed during the 1995/1996-1999/2000 period in parallel with the implementation of the reform program. Section D summarizes the benefits and the risks associated to the program, including those related to the environmental impact of the program. Section E describes the implementation arrangements. A. PROGRAM OBJECTIVES 3.3 The program, as stated in the Government letter of sector policy (Schedule 1), aims at improved efficiency and sustainable and coherent development in the transport sector to enable it to resume its contribution to development, poverty alleviation and protection of the environment. These objectives would be achieved by: (a) State divestiture from transport operations in favor of a greater involvement of private operators, and institutions more focused on planning, regulation and definition of sector policies; (b) better balance in resource allocation between prudent investments and maintenance expenditures, and sustainable resource mobilization; (c) improved regulatory framework resulting in more liberalization, increased competitiveness and more competition; and (d) development and implementation of a sector policy to protect the environment. The letter of sector policy and its matrix of action agreed during negotiations should be adopted by the Government before Boardpresentation. 12 Transport Sector Project B. PROGRAm DESCRIPTION 3.4 Civil Aviation. In September 1994, the Government agreed to privatize both domestic and international air transport operations in Cameroon. The agreed strategy consists in the winding-down of CAMAIR and the creation of a new company for the provision of air services. Control and ownership of the new company to the private sector would be transferred through a management contract with deferred privatization option or by capitalizing the new company by a group of private investors. There is a potential for private provision of air services, both by national investors or in partnership with foreign carriers. Since 1994, four national air carrier were authorized to operate in Cameroon. South African Airways has also hinted at possible cooperation. However, if the private sector was not interested in participating in the ownership of the new company, the Government would divest the aviation related assets and auction the traffic rights to domestic/regional air carriers. The strategy for the privatization of air services and key financial data are presented in the Technical Annex of the SAR for the Transport Sector Technical Assistance Credit. Timing targets for the critical steps of the process are in the matrix of action attached to the letter of sector policy. Benefits resulting from this privatization are presented in Schedule 2. Bidding for the selection of the private strategic partner is expected to be launched before August 1996. Status of progress: The financial adviser which will assist the Government in the privatization process was appointed in February 1996. 3.5 In conjunction with the privatization of air services, CAMAIR is preparing to reduce its number of employees. On the basis of typical ratios for airline companies, it is estimated that CAMAIR is overstaffed by 600 to 800 employees or about half of its personnel. When funds for severance payment are available, a first group of employees would be laid off. A second group would be laid off after a decision is taken by the management team of the new company on the number of staff which would be rehired by the new company. Status of Progress. A consultant, hired under the Transport Sector Technical Assistance Project, is evaluating CAMAIR's employees to provide the basis for staff reduction. 3.6 An outright liquidation of CAMAIR would have been politically unacceptable. The Government attaches great importance to CAMAIR as the national flag carrier, not only because it services domestic routes, but also because it puts Cameroon on the map regionally and internationally. The Government also considers that Cameroon, a country with a population of 12 million, needs a domestic air service. The Government recognizes that a solution needs to be found, which would be compatible with political constraints, to stop subsidizing air services. IDA's position is that Carneroon is entitled to an air service provided that it is efficient, not subsidized, and operates on market principles, preferably with a majority of private shareholders. Following the detailed studies carried out on CAMAIR, the Government requested that concrete proposals be presented, which resulted in the strategy mentioned above. Two options were also considered but rejected: (a) elimination of budget support, which would cut spending in vital sectors; and (b) execution of another performance contract, which was unsuccessfully attempted under the SAL (1989). 3.7 In order to increase the efficiency for the provision of air transport services in Cameroon, and to promote private sector participation, the regulatory framework should be revised before completion of privatization. The status of the revision is the following: Chapter 3 -Transport Sector Program 13 Action Status Timetable * To open the cargo market, both in the local and Issue being analyzed to provide Medium term international segments, through more flexibility recommendations. in the use of charter flights to allow for competition and competitive rates. To use explicit and efficiency-driven subsidies Definition of routes and subsidies will Medium term in the case of social routes. be included in the privatization process. To establish a jet-fuel price policy in line with Issue being analyzed to provide Medium term international standards. recommendations. To revise the Civil Aviation Law. A consultant is being recruited to Medium term prepare the new Law. * Indicates the term the end of which the action is expected to be completed. Short term: less than one year; medium term: between 1 and 3 years; long term: more than three years. 3.8 Railway. The Governnent has agreed to separate the ownership of the infrastructure from railway operations by creating a new private company to commercially operate railway services for freight through a concession agreement. The core shareholders of the new operating company would be selected following intemational bidding procedures. The Government has still to choose the conditions of operations for passenger services from four options: (a) include the services in the concession agreement as public service obligations; (b) contract an agreement with a private company distinct from the concessionary company for freight; (c) replace rail passenger services by bus services and contract a private company for the operation of these services; and (d) stop providing passenger services while maintaining the roads accessing the villages along the railway track. The strategy for the privatization of railway operations, key financial data after privatization and a preliminary risk analysis for both Govemment and private investors are presented in the Technical Annex of the SAR for the Transport Sector Technical Assistance Credit. Timing targets for the critical steps of the process are in the matrix of action attached to the letter of sector policy. Benefits resulting from the privatization are presented in Schedule 2. Preselection of the potential private majority shareholders of the concessionary company is expected to be launched in April 1996. Status of progress: A decision on passenger services has to be taken before launching the tender for the selection of the private majority shareholder. The financial adviser which will assist the Govermment in the privatization process was appointed in December 1995. 3.9 Revision of the regulatory framework is needed to accompany the privatization of railway operations. The status of the revision is as follows: Action Status Timetable The transport component of the price structure for A new price structure will be prepared Medium term petroleum products should be revised to promote in conjunction with the simplification competition between transport modes and encourage of the road taxation system (see para. petroleum companies to use the less expensive mode 3.11 below). of transport. The railway transit procedures should be improved. The reform will be implemented as part Long term of the UDEAC Transport Reform Program (see paras. 3.16-3.17). 3.10 Urban Transport. The Government has decided to liquidate SOTUC, the public urban bus company and divest of urban transport. On February 22, 1995, the General Assembly of shareholders officially announced SOTUC's liquidation, and services were stopped. A liquidator was appointed in April 1995, whose terms of reference sought the completion of liquidation within sixth months, once the procedure has begun. Benefits to the Cameroonian economy resulting from the liquidation, are presented in Schedule 2. The conditions of access to the industry, related to vehicle insurance, vehicle certification, taxation of activity and vehicle safety should be revised accordingly. Status of Progress. The liquidation 14 Transport Sector Project has been delayed because of lack of decision by MINEFI regarding the settlement of SOTUC's debts and arrears and because of procurement issues in the sale of the buses. Draft recommendations on the new regulatory and institutional framework for urban transport were discussed during a seminar held in November 1995. The seminar was attended by private urban transport operators, representatives of local governments, the Administration, commercial bankers and donors. Based on the outcome of the seminar, a new regulation was drafted. The Government should enact the new institutional and regulatory framework for urban transport before effectiveness. 3.11 Interurban Transport. The Government is studying simplification of the taxation system for road transport, through the creation of a road tax collected by one institution only (thus replacing several taxes collected at different stages, by several institutions), as well as a road user charge, clearly identified in the price of petroleum products, to be used to finance road maintenance (see para. 3.24). The Ministry of Economy and Finance (MINEFI) has not yet agreed to such a simplification, or to the implementation arrangements. Status of Progress. Recommendations on the simplification of the road taxation system prepared by a task force created by MINEFI are being reviewed by the Government. Once decision is taken by the Government, implementation arrangements have to be defined, especially the responsibilities of both MINEFI and MINT. 3.12 A presidential decree was taken in 1995 to remove illegal road controls by the administration (police, customs, etc.). The experience shows that such decree has a temporary impact and illegal controls reappear soon. MINT intends to follow up on the compliance with the decree to prevent such reappearance. Toll roads were created in 1993, but revenues have been far lower than expected because of fraud, estimated at 50 percent. A decision on their privatization or removal will be taken as part of the simplification of the road taxation system. In parallel to the simplification of the road taxation system, truck loads should be limited to reduce considerable overloads especially on timber trucks. Four weighing stations on the Douala-Yaoundd road were rehabilitated under the Sixth Highway Project (Loan BO 18-CM) in 1994. Status of Progress. The operation of two weighing stations which was going to be started by MINT was postponed by the Government. MINT wants to fine overloaded trucks, but the trucking industry is complaining that the axle load regulation is inadequate and that its application would hamper the competitiveness of the industry. Collection of statistics on truck loads should start at least at two weighing stations on the Douala-Yaounde road as a condition for disbursement of the paved road component of the IDA credit. The Government should enact a new regulation based on data collected and after discussions with the trucking industry. 3.13 Maritime Transport. The Government has agreed to privatize CAMSHIP, the national shipping line, and to privatize or liquidate CAMTAINER, the national road carrier and freight forwarder. Key financial data after privatization are presented in the Technical Annex of the SAR for the Transport Sector Technical Assistance Credit. Timing targets for the critical steps of the process are in the matrix of action attached to the letter of sector policy. Benefits to the Cameroonian economy resulting from the privatization are presented in Schedule 2. Status of Progress. The financial adviser which will assist the Government in the privatization process was appointed in October 1995. 3.14 Early 1995, the National Assembly adopted a law which liberalizes access to the maritime industry by Cameroonian shipping lines. Although the Government agrees to the final objective of fully liberalizing maritime transport, it wants to maintain the current regulation on cargo distribution during a transitory period. The 1995 law suppresses CAMSHIP's monopoly, but maintains the application of the Code of Conduct (see paras. 2.8 and 2.18 above) and the protection of Cameroonian shipping lines. As an immediate step of the liberalization process and to set up an acceptable regulatory framework in parallel to the privatization of CAMSHIP, the manner in which the Code of Conduct is applied should be revised in order to comply with the clauses of the Code. Accordingly, the quota system would be applied to the Liner Conference traffic and no more to the entire Cameroonian maritime traffic, especially not to bulk traffic. Terms and conditions for freight transport outside of the Liner Conference traffic, and currently contracted- Chapter 3 -Transport Sector Program 15 out to CAMSHIP (clinker and petroleum products), should also be reviewed to decide whether or not these contracts should be abolished and retendered. Further steps in the liberalization process should be coordinated at the regional level, as part of the Trade and Transport component of the Sub-Saharan Africa Transport Policy Program (SSATP), which involves Sub-Saharan African countries and most of the donors involved in transport in this area. The Trade and Transport component aims at establishing a new maritime transport policy for Sub-Saharan African countries. Status of Progress. The decrees defining the modalities of application of the 1995 law were approved by the Government in April 1996. The preparation of a new regional maritime policy is still at the studies stage under the SSATP. Studies are expected to be completed, and recommendations discussed during a regional seminar of SSATP countries and donors in 1996. The discussion between the Govermment and IDA will continue as part of the discussions on the overall adjustment program. A study is included in the Transport Sector Technical Assistance Project to identify the bottlenecks in the intemational chain of transport and to estimate their costs to prioritize reform actions. This study will support the discussions on the timetable for the full liberalization of maritime transport. The contract with the consultant which will carry out the study is at the negotiation stage. 3.15 To be consistent with the sector policy, the role of CNCC, the Shippers' Council, should be revised. As a first step, CNCC should control a posteriori the application of the Code of Conduct. Financing of CNCC by a 0.3 percent surcharge on importlexport by sea and waivers paid by shipping lines to transport freight toward Africa should be stopped, and CNCC should be financed from the State's budget. Further steps will be defined as part of the Trade and Transport SSATP component. The role of CNCC was discussed by CNCC, public and private shippers, CAMSHIP, and the Cameroonian Administration during a seminar, and during several meetings of a committee created to follow up on recommendations made during this seminar. However, the committee's recommendations maintain the current role of CNCC and financing means while adding the roles of economic observer of the transport sector and strengthening the services to shippers. Status ofProgress. The draft decree defining the control a posteriori is being reviewed by the Government. 3.16 Transit Transport. Within the Union of Central African States (UDEAC) framework, the 1989 Joint EU-World Bank initiative launched a transit transport facilitation program in the Central Africa subregion. The obstacles to trade and facilitation prevalent throughout the UDEAC customs were analyzed by the UDEAC countries during preparation of the transport component of the UDEAC Regional Policy Reform Program (Report No. 1 1296-AFR dated April 30, 1993) in collaboration with the EU and IDA. In joint workshops held in November 1991, and in March and December 1993, the UDEAC countries agreed to a Program of Regional Reforms to improve transit conditions. National Transit Commnittees were created in the six UDEAC countries to draw up plans to: (a) simplify customs documents and devise a system of regional transit under customs bonds (TIPAC); (b) review the criteria for establishing bonded customs centers; (c) redefine transit requirements for intermodal transport (rail/road, rail/river) and containers; and (d) improve road transport conditions and regulations (maintenance of international itineraries, trucking liabilities, vehicle inspection, and cost recovery). 3.17 The TIPAC mechanism is a procedure whereby goods travel duty free across the border under customs bonds, accompanied by a bill of lading, with the liability for possible loss of customs duties held by the transport operator. The Manual of Procedures for the TIPAC was adopted by the UDEAC countries in March 1993. The mechanism is similar to the transit system in Europe (TIR), where this liability is guaranteed and surveyed by the International Road Union (IRU). For the liability to be credible to customs in UDEAC countries, the bill of lading and the transporter must be covered by a regional insurance policy which would reimburse customs for lost duties should the transport operator or the importer abuse the mechanism by evading import duties. The insurance policy would be funded from the sale of vouchers attached to the bill of lading. The regional insurance policy is being designed and candidate institutions were identified to manage the insurance policy. EU financing is available to provide assistance for the implementation of the TIPAC, which is expected to be completed two years after 16 Transport Sector Project commencement of the assistance. An action plan and a timetable are provided in Schedule 3. Delays in implementation of the TIPAC are due to the difficulty to hire the international coordinator who will assist the regional and national committees. 3.18 The policy measures to complement the TIPAC system are the following: (a) streamline road transport regulations to harmonize national and UDEAC transport regulations and vehicle standards; harmonize the structure of road user charges; enforce control of truck overloading to prevent road deterioration; (b) seek legal registration of customs agents, forwarding agents, and international road transporters, and agree to and enforce criteria underlying the approval of such registration; (c) harmonize and liberalize freight insurance in UDEAC. 3.19 As most of the obstacles to transit transport occur in Cameroon, the success of this program depends to a large extent on the willingness of the Cameroonian authorities to take the necessary measures to overcome these obstacles. In addition to the measures to be taken at the regional level, Cameroon should shorten the list of sensitive goods which require a customs clearance for transit; limit road controls by the administration to those specified in the UDEAC legislation; and suppress requirements for customs escorts for transit goods through Cameroon. The requirement to domicile invoices and import licenses in Chad and the Central African Republic was removed in 1994. The continued dialogue between UDEAC countries within the framework of the UDEAC Regional Policy Reform Program and its transport component will be key to the success of the TIPAC as well as to the removal of obstacles to transit in Cameroon. 3.20 The Cameroonian customs need a comprehensive overhaul. In March 1995, the French Ministry of Cooperation (FAC) prepared a plan for improving customs' performance and efficiency. The plan includes the following measures: (a) carry out a human resource development plan; (b) improve human resource management; (c) revise the organizational chart based on actual workloads; (d) rehabilitate the customs computerized system; (e) transfer customs headquarters to new offices outside from the port, rehabilitate existing buildings and provide telecommunication equipment; and (f) maximize the input of the preshipment inspection company (para. 1.3). Details are provided in Schedule 4. Status of Progress. The preshipment inspection company was made responsible for customs duties assessments and monitoring of actual collection in 1995. The Government is in the process to choose the new customs computerized system. Arrangements to implement the remaining measures in the plan described above have still to be worked out. The financing to support the restructuring of customs is still sought. FAC and CFD have expressed an interest. The discussion between the Government and donors will continue as part of the general discussion on structural adjustment. 3.21 The physical component of the transport component of the UDEAC reform program consists of: (a) rehabilitation and maintenance of international road itineraries to CAR and Chad, as agreed by the UDEAC Steering Committee in June 1993; (b) improvement of the customs facilities in Douala and at border crossings with CAR and Chad; (c) rehabilitation of the computerized customs declaration system in Douala, and provision of a modem telecommunication system; and (d) provision of international trucking facilities at Douala port. The rehabilitation of the Cameroon-CAR road itinerary and provision of a modem telecommunication system are being executed with EU financing. Status of Progress. Detailed engineering studies for the rehabilitation of the intemational itineraries are underway. Chapter 3 -Transport Sector Program 17 3.22 Primary Roads Maintenance. The Government has agreed to a new strategy for road maintenance to improve its efficiency and its sustainability: (a) To adjust the road maintenance program to management and financing capacity: A 13,738 km priority network out of 21,343 km of primary paved and earth roads (see Maps IBRD Nos. 24837 and 24838) has been identified based on: economic importance (traffic flows); consistency of the network and needs for links between urban centers and regions of agricultural production; communication between administrative centers; and regional equity. The priority network includes all paved roads (4,054 kIn), 8,568 km of earth roads of economic importance and 1,136 km of earth roads responding to the above criteria other than economic importance. Detailed characteristics of the priority network are available in the project file. Type of network Total network Priority network (km) (km) Primary Roads Paved roads 4,054 4,054 Earth roads 17,289 10,704 Sub-total 21,343 14,758 Rural Transport Infrastructure 27,935 10,952 Total 49,278 24,710 (b) To disengage itself progressively from maintenance execution: Periodic maintenance and rehabilitation of all paved roads, as well as periodic maintenance of earth roads, and progressively routine maintenance of earth and paved roads would be contracted-out to private contractors, including the local construction industry, small contractors, village workers, and communities, using labor-intensive methods and local materials, where possible. (c) To improve planning and programming capacity: A pluri-annual maintenance programming system will be established using as criteria the existing level of service of the priority road network, and also climatological, geographical and geotechnical parameters. The system is being defined under an IDA-financed study for earth roads, and Germany- financed study for paved roads. (d) To focus MINTP's role on planning, programming and budgeting, supervising works and controlling objectives: External audits of technical and financial performance and of procurement procedures would be carried out to ensure accountability. (e) To encourage development of small and medium contractors by providing training in technical and financial management; by creating a stable market; by defining policies to eliminate present constraints to private sector participation; by revising procurement regulations; and by establishing a rapid payment system because small contractors do not have sufficient working capital to prefinance expenditures for works: Use of small and medium enterprises for road maintenance was tested under EU financing. A road maintenance program amounting to about US$26 million was contracted out to 38 small and medium enterprises (SMEs). SMEs which had been preselected, were trained on procurement and management of road works. Lessons learned from this project were used to prepare the application of the new strategy to the entire priority network. (f) To ensure sustainability of road maintenance financing and transparency and accountability in the use of funds. A Road Maintenance Account would be used as a mechanism to achieve these objectives (see para. 3.24). 18 Transport Sector Project 3.23 The status of preparation of the strategy and the timetable for its implementation are the following: Action Status Timetable The State to disengage itself A program to progressively contract out Rehabilitation, periodic maintenance, progressively from road road maintenance execution was cleaning of shoulders: short-term. maintenance execution. established by MINTP. Routine Maintenance: long term. To improve planning and A study was carried out to establish the Medium term progranmming capacity. mechanism. The draft report was submitted to MINTP. To focus MINTP's role on MINTP restructuring is being defined Short term planning, programming and accordingly under an on-going study budgeting, supervising works part of the Transport Sector TA Project. and controlling objectives. The draft report was submitted to MINTP. To encourage development of The new framework and procedures are Short term small and medium being defined under an on-going study contractors. part of the Transport Sector TA Project. 3.24 The Ministry of Economy and Finance has created a Road Maintenance Account in a commercial bank to which funds would be allocated from the budget to finance road maintenance expenditures. A task force created by the Ministry of Finance on the financing of road maintenance endorsed the recommendation made during a national seminar and several regional seminars on the road maintenance strategy to create a Road Fund funded by a road user charge under the supervision of a committee constituted of representatives of road users, local Governments and central Government. Status of progress. The Government has defined management procedures, including annual audits, of the Road Maintenance Account. The account should be opened and an initial deposit paid before effectiveness. In April 1996, the Government approved the principle of a Road Fund and is reviewing the recommendations mentioned above. 3.25 The Government has adopted a program to progressively contract out road maintenance (see matrix of action attached to the letter of sector policy). However, the experience from previous highway projects in Cameroon points to the difficulty to ensure compliance with as well as monitor such program, especially with respect to routine maintenance. This is due to the geographical spreading out of the works, their variety, the need to implement the monitoring system involving large amounts of training and equipment as well as technical assistance. Experience under the Sixth Highway Project also shows the difficulty to sustain the organization necessary to execute and monitor such program. Therefore, it is proposed to adopt a progressive approach with realistic objectives easy to monitor aimed at sustaining the maintenance of invested capital. Starting when the Road Maintenance Account is created, the minimum of funds allocated to the Account for maintenance by contract during each fiscal year would be equal to resources needed to maintain by contract roads which were built, rehabilitated or maintained by contract since January 1st, 1990. Such approach would lead to a progressive increase in the minimum amount of resources allocated to road maintenance by contract. A programn of allocation of funds was established in accordance with the proposed approach. Funds should be allocated in accordance with the program before effectiveness. Fund allocation and use of these funds to maintain the roads defined as above, will be closely monitored during project execution in order to decide on financing a second- and third-year slice of the road maintenance program under the IDA credit. 3.26 Rural Transport Infrastructure. Improvement of rural transport infrastructure is one of the actions to reduce poverty that was identified during a national workshop on poverty held in November 1994. To achieve this objective, delegation of authority for the management of rural transport infrastructure should be entailed to local govermnents, local communities down to village level and community groups depending on the type of rural roads. To make rural transport infrastructure manageable, the not-homogenous and vast rural transport infrastructure has to be divided into clearly Chapter 3 -Transport Sector Program 19 defined sub-categories which fall under the responsibility of these various institutions. This would be a significant shift from the current centralized system regarding decision-making and execution, and has to be implemented in conjunction with the overall decentralization process where the central government would divest of implementation and execution of investment projects of local importance. 3.27 Because full decentralization cannot be achieved in a short period of time, the objective for the period covered by the program is to launch the decentralization process in the management of rural infrastructure and to set up an institutional framework which involves beneficiaries at the various steps m the management of rural transport infrastructure maintenance: (a) planning: in the choice of itineraries to be maintained; (b) periodic maintenance and rehabilitation: in the procurement process for contracting out rehabilitation works; and (c) maintenance: in the financing of maintenance works as well as in their execution. Itineraries would be chosen in accordance with pre-established criteria within a 10,952 km priority network agreed by the Government. The priority network consists of rural roads whose rehabilitation would generate a rate of return above 10 percent. Details on the priority network are available in the project file. Rehabilitation would be limited to critical spots in order to make the roads passable in all season and adapt their characteristics to the maintenance capacity of local communities. Periodic maintenance and rehabilitation would be financed by the State; routine maintenance would be financed by the local communities. Such strategy should be discussed in several regional seminars and a national seminar and disseminated during a sensitization and training program aimed at the rural road administration, the local governments and direct beneficiaries. 3.28 Priority for the execution of maintenance works should be given to small and medium enterprises and to the use of labor-based methods and local materials. The emphasis on execution of routine maintenance supports these objectives as these works, such as brush-clearing are labor intensive. The critical-spot approach for rehabilitation is also suited to these objectives. Works are scattered resulting in small contracts that can be executed by the local SMEs, which have a limited capacity. Road standards and norms for the execution of maintenance works should also be defined with the objective of promoting labor-based methods and the use of local materials. 3.29 AMTGENIE. The Government has agreed to retrench on its equipment rental activity. The strategy consists in splitting MATGENIE into five separate entities and progressively privatizing these entities. Critical steps and timing targets are in the matrix of action attached to the letter of sector policy. This would make it easier to privatize MATGENIE in accordance with the financial capacity of local investors. Both direct privatization through sale of public participation in the entities, or privatization of management could be considered. This option would also introduce an element of competition among the five entities. Although liquidation of MATGENIE and sale of the equipment was initially considered, this option was not retained as the road maintenance organization and financing still need to be sustained before local investors can be expected to invest in equipment rental, and supply the full equipment required for road maintenance. The regional managers should be appointed before effectiveness. 3.30 The number of items of equipment needed for the maintenance of the priority network is estimated at 941. Depending on the capacity of private entrepreneurs to provide their own equipment, the number of items of equipment to be provided by MATGENIE in the future ranges from 130 to 190. The number of employees is estimated at 300, against 385 after the 1994 restructuring. In April 1995, MATGENIE owned 734 items of equipment of which 55 percent were operational (up from 31 percent in April 1994), 26 percent needed heavy repairs (down from 49 percent in April 1994), and 19 percent should be scrapped. MATGENIE and MINTP are preparing the auction of the equipment to be scrapped which should take place before the end of 1995. 3.31 LABOGENIE. The Government has agreed to restructure LABOGENIE. The process will consist in financial restructuring and dismissal of about 300 employees. This is expected to result in the creation of local consulting firms specialized in the field of geotechnics and foster competition for the 20 Transport Sector Project geotechnical supervision of road works. The legal statute of LABOGENIE for the long term has still to be defined and the potential participation of private investors in the company to be established. LABOGENIE's operating expenditures should be reduced by 30 percent in relation to LABOGENIE's FY94 accounts before effectiveness. 3.32 Port Activities. The Government has defined a new strategy for port operations: (a) Dredging of the access channel will be contracted out to ensure efficient and sustainable performance of the activity. The Govermnent is considering two options to contract out dredging: (a) select a firm through international competitive bidding; or (b) promote the creation of a local firm with participation of local and foreign private and public partners. Status of Progress: A consultant is being selected to compare the two options and provide the elements of decision to the Government. Implementation of the option would be a condition for any further IDA involvement in the port sector. (b) Port operators should be more involved in the management of the port authority and im the definition of strategies in the sector by redefining the relationships between stakeholders within the port community and by increasing the participation of port users in the Board of Directors of the port authority. The contractual relationships between the port authority and port operators need to be revised to provide investment incentives, and to encourage the commitment of port operators to the long-term development of Cameroonian ports. Status of Progress. The arrangements related to the new role of port operators are being defined. Their implementation would be a condition for further IDA involvement in the port sector. (c) The port authority will be restructured to reduce operating costs and tariffs on the basis of the analytical accounting being implemented. A human resource development plan should be established and implemented in conjunction with the restructuring. Status of Progress. The action plan prepared by ONPC for FY96 and FY97 is attached to the letter of sector policy. Technical assistance is being selected as part of the Transport Sector TA Project to support the port authority during the restructuring process. Operational and financial targets to be met by the port authority within one year after the start of the technical assistance should be established before Board presentation. (d) The investment plan is being revised to reflect economic priorities and ONPC's capacity to finance the plan. This capacity was assessed in a study available in project files. The order of priority is: dredging of the channel, rehabilitation of port infrastructure, construction of a berth for timber vessels, implementation of the management information system, modernization of the container terninal, and construction of dikes to calibrate the access channel. Including on-going investments, the five-year investment plan amounts to US$116 million (CFAF57.7 billion), of which 51% is available external financing, 19% is own financing and 30% is sought from external donors. The investment plan agreed between the Ministry of Transport and ONPC is attached in Schedule 5. 3.33 Institutions. As mentioned above, MINTP's role would be to program, manage and supervise road muintenance works, most of which will be contracted to private contractors. Following the 1995 revision of the national procurement code, MINTP became autonomous in procurement decisions on maintenance works below a certain amount to ensure efficient execution of road maintenance by small and medium-size contractors (para. 2.7). MINT would focus on sector strategy, policy formulation and transport regulation. Status of Progress. An IDA-financed study was carried out to prepare MINTP's shift toward its new role. MlNTP's procurement committee should be created before Board presentation. The Government should decide before effectiveness on an action plan for restructuring of MINTP. Progress in restructuring of Chapter 3 -Transport Sector Program 21 MINTP according to the action plan would be reviewed by IDA before agreeing to finance subsequent slices of road maintenance works. A FAC-financed study will be carried out to prepare MINT restructuring. MINT restructuring would be implemented as part of the project to accompany the privatization of transport PEs. MINTP's restructuring is expected to be completed before August 31, 1996, and MINT's restructuring before December 31, 1996. C. SECTOR INVESTMENT PROGRAM 3.34 Public Expenditures. The Government policy is to substantially change the structure and quality of public expenditures by allocating and increasing proportion of spending to non-wage current and capital expenditures, particularly primary and secondary education, basic health, agriculture services, maintenance of transport infrastructure and special poverty reduction measures. This policy was reflected in the FY96 Finance Law which increased non-wage current expenditures for key development sectors from 30.5 percent of total non-wage expenditures in FY95 to 37 percent. 3.35 The distribution of the FY96 budget among ministries was prepared by the Government in consultation with IDA as part of the SAL preparation. The operating and investment budgets of MINT and MINTP are provided in table 3. The investment budget is split into two priorities to allow adjustment in accordance with the actual fiscal revenues. Determination of priorities by Goverrnment remain ad-hoc. The Government provided assurance durtng negotiations that subsequent budgets and PIP for both ministries would be adopted in the annual Finance Laws in consultation with IDA. Table 3: FY95/96 Budget. MINT and MINTP (CFAF million) Operating Costs Investment Excluding Salaries Priority I Priority 2 Sub-Total Total MINT 985 580 320 900 1,885 MINTP 15,272 3,000 1,611 4,611 19,883 3.36 Two issues in relation with MINTP's budget are being addressed under the program: (a) Budget preparation: The budget should be established on the basis of actual maintenance needs for the priority network. Currently, MINTP's budget in its presentation is scattered among all roads with the political objective to satisfy all demands. The on-going road programming study should provide the tool to establish more realistic budgets and help in determining priorities. (b) Budget execution: Budget execution is less than satisfactory. Most of the budget is executed by decentralized services of MINTP. MINTP is unable to consolidate the budget execution at the end of year because of uneven information transmitted by its decentralized services. Payments are made from the Treasury without the information being transmitted to MINTP. Suppliers cover the risk of delays in payment by artificially increasing the amount of invoices. MINEFI's information on the budget execution is not reliable because of the absence of relation between the financial commitment and the actual execution of the works of supply of the goods. The creation of the Road Maintenance Account (para. 3.24) should significantly improve the quality of MINTP's budget execution by identifying the expenditures prior to the allocation of resources to the Account and requesting a justification for previous expenditures before replenishing the Account. 3.37 Recurrent Costs. Recurrent costs have been calculated for the priority network only. They include routine and periodic maintenance costs. The average amounts of annual recurrent costs are estimated at CFAF18.0 billion (US$35.4 million) (Table 4). This is CFAF2.7 billion above MINTP's budget for FY96. This does not include resources required for urban roads (about 3,000 kIn) which are estimated at CFAF4.2 billion for routine maintenance and CFAF3.5 billion for periodic maintenance. These estimates 22 Transport Sector Project are based on a network in good condition and maintained in accordance with reasonable standards. The actual needs are much higher in the short term because most of the network is in fair to very poor condition, and maintenance requirements are thus much higher to bring back the network to a good condition in a short period of time. Actual costs are being estimated in the on-going road programming study. However, it is clear that resources available from the Government and donors are insufficient to bring back the network to a good condition and maintain the priority network with reasonable standards. Table 4: Average Annual Road Maintenance Recurrent Costs Routine Maintenance Periodic Maintenance Quantity US$ million CFAF million US$ million CFAF million Paved roads 4,054 km 7.3 3.7 6.9 3.5 Earth roads 9,704 hn 7.8 4.0 11.5 5.9 Rural roads 10,954 km 1.9 0.9 0.0 0.0 Total 24,712 km 17.0 8.6 18.4 9.4 3.38 During the next four years at least, the Government will have to manage the political sensitive issue resulting from the inadequacy between scarce resources and the financial requirements for road maintenance. In addition, unaccountable force account will still continue to exist during this period, although road maintenance will be progressively executed by contract. For these two reasons, targets have not been established for the entire budget for road maintenance including force account. Assurance should be sought during the annual review of the road maintenance budget by IDA that financial targets have been established based on the evolution of the macro-economic situation, costs of road maintenance by contract and the targets established in the matrix of action of the letter of sector policy for the progressive transfer of road maintenance execution from force account to contract (para. 3.25) and that funds to be deposited on the Road Maintenance Account should not be less that these financial targets. 3.39 Public Investment Program. After having been subject to lengthy unsuccessful discussions between the Bank and the Government for several years, the 1995/1996-1999/2000 Public Investment Program (PIP) for the transport sector prepared in conjunction with the FY96 Finance Law represents an improvement in comparison of the previous years. It is a first step toward an effective programming tool. It includes only on-going projects and projects for which a preliminary agreement already exists between the Government and the external donor. Most projects were or are being submitted to an economic analysis. The PIP also includes taxes in accordance with the new tax regulation adopted in 1995. Further improvement is needed to update more regularly data and reflect the actual execution of projects. 3.40 The total cost of the sector investment program, including taxes, is estimated at US$722.7 million. The cost, net of taxes and duties, is estimated at US$614.1 million with a foreign exchange component of US$410.1 million or 67 percent. The Government and transport public enterprises would bear the cost, estimated at US$108.7 million, of taxes and duties levied on works, consulting services and goods. Investments carried out by public enterprises and listed in the program are those for which Government guarantee is required although the PEs will service the debt. Investments, such as for REGIFERCAM, which will not service the debt, are listed as Government investments. Detailed program costs are provided in Schedule 7. A summary breakdown of the program costs is given below. Chapter 3 -Transport Sector Program 23 Table 5: Estimated Program Costs CFAF billion USS million Component Foreign Local Taxes Total Foreign Local Taxes Total % Foreign Base Exchange Costs 1. Civil Works A. Paved Roads 29.1 11.6 8.7 46.4 57.7 23.0 17.3 98.0 59 15 B. Unpaved Roads 36.6 25.7 6.9 69.1 72.4 50.8 13.6 136.8 53 22 C. Rural Roads 12.6 10.5 3.0 26.1 25.0 20.8 6.0 51.8 48 8 D. Port 25.1 11.0 9.2 45.2 49.7 21.7 18.1 89.5 56 14 E. Rail 23.5 11.8 7.2 42.5 46.5 23.4 14.3 84.2 55 13 F. Air 4.3 1.9 1.3 7.6 8.6 3.8 2.5 14.9 58 2 2. Goods 36.0 5.9 6.7 48.5 71.3 11.6 13.2 96.1 74 15 3. Consultants' Services and Studies A. Institutional Development 6.0 3.0 1.7 10.7 11.9 5.9 3.4 21.2 56 3 B. ProjectImplementation 10.7 5.0 2.1 17.8 21.1 10.0 4.1 35.2 60 6 4. Training and Seminars 1.3 1.0 0.5 2.9 2.6 2.1 1.0 5.7 46 1 TOTAL BASELINE COSTS 185.2 87.4 47.3 319.8 366.7 173.1 93.6 633.4 58 100 Physical Contingencies 14.1 7.1 4.3 25.4 27.9 14.0 8.4 50.3 55 8 Price Contingencies 9.9 9.6 3.9 23.4 15.5 16.9 6.7 39.1 40 6 TOTAL PROGRAM COSTS 209.1 104.0 55.4 368.5 410.1 204.0 108.7 722.7 57 114 3.41. The costs above include on-going projects financed by IDA, OECF, EU, AfDB, BMZ, CFD, FAC, and the UN, as well as projects under preparation by IDA, CFD, EU and AGCD. Schedule 7 details the amounts per component, per donor and per year. Table 6 details the amounts per donor for on-going and new projects. About half of the investment program consists in on-going projects. Half consists in new projects for which 42 percent of the resources, excluding Government resources, are available. The EU envisages a new road maintenance project of about US$50 million. IsDB and the OPEC Fund have expressed their interest in participating in the investmnent program. Table 6: Distribution of Financing per Source of Funds (US$ million) On-going projects New projects International Development Association (IDA) 10.2 60.7 European Union (EU) 120.9 Caisse Frangaise de Ddveloppement (CFD) - 56.8 Fonds d'Aide et de Cooperation (FAC) 3.0 African Development Bank (AfDB) 48.9 Bundesministerium fir Zusammenarbeit (BMZ) 77.7 United Nations Agencies 0.9 Overseas Economic Cooperation Fund (OECF) 25.0 Agence Gendrale de la Cooperation au Developpement (AGCD) - 8.2 Financing to be sought - 143.0 Public Enterprises (including US$16.1 million of taxes and duties) 15.8 30.5 Government (including US$92.6 million of taxes and duties) 27.7 78.9 Total 344.6 378.1 3.42 On-going investmnents have been included in the program to start the process of globalizing the approach in ternis of transport sector investment. It is also to take into account projects that have been prepared in line with the new transport sector strategy as well as to reflect efforts made by the Government and donors to adapt these projects to the sector program approach. On-going projects in line with the new transport sector strategy include the Road Maintenance Project financed by EU and the Transport Sector Technical Assistance Project financed by EU, FAC, BMZ and IDA. As an exarnple of on-going projects which were adjusted, supply of road maintenance equipment under the AfDB highway project was modified to focus on equipment used for routine maintenance and supply of heavy equipment was canceled. Also, a 24 Transport Sector Project dredger to be purchased under a BMZ project is being redesigned to make it simpler and more coherent with the privatization of dredging underway. The container terminal modernization project financed by OECF was also downsized to adjust to the diminution of port traffic. All these modifications are also expected to result in a decrease of recurrent costs. 3.43 Table 7 summarizes the distribution of the investment program per donor, subsector and type of investment. Table 7: Distribution per Donor, Subsector and Type of Investment (US$ million) Project Component IDA IDA OECF AGCD EU BMZ AfDB CFD FAC UN Ben. Govt. To be Total TSP TSTA sought 1. Civil Works A. Paved Roads 17.9 2.8 8.6 20.2 23.4 35.9 110.9 B. Earth Roads 25.1 78.2 1.3 20.7 19.9 13.4 158.6 C. Rural Roads 8.4 22.6 12.2 16.7 59.9 D. Port 25.0 44.6 6.6 29.2 105.4 E. Rail 21.6 7.0 17.0 54.2 99.8 F. Air 14.5 1.3 1.7 17.4 2. Goods A. Roads 0.1 24.8 4.7 29.7 B. Port 22.4 0.3 0.8 23.5 C. Rail 8.2 23.3 11.8 43.3 D. Air 0.7 0.7 E. Other transport 0.9 0.2 0.9 0.2 5.6 1.4 9.2 3. Technical Assistance A. Institutional 1.7 4.7 6.0 0.8 2.2 0.4 3.6 3.2 22.6 Development B. Project 3.7 4.5 10.0 0.9 2.4 2.3 0.4 0.9 6.1 4.5 35.7 Implementation 4. Training and 3.0 0.8 0.4 1.1 0.3 5.9 Semninars TOTAL 60.7 10.2 25.0 8.2 120.9 77.7 48.9 56.8 3.0 0.9 46.3 121.2 143.0 722.7 3.44 IDA Contribution to the Sector Investment Program. The proposed contribution would consist in the following components: (a) Execution of a three-year time-slice of the maintenance program on primary roads of the priority network: During the first year, rehabilitation or periodic maintenance will be executed on 915 km (300 km paved, 615 kn unpaved). Rehabilitation and periodic maintenance requirements for the second and third year of the time-slice will be determined on the basis of the road maintenance programming mechanism being established under two on-going studies financed by IDA for earth roads and by Germany for paved roads under the Transport Sector Technical Assistance Project. All roads are part of the priority network. (b) Execution of a rural transport infrastructure maintenance program: The program aims at rehabilitating about 1,500 km within the 10,952 km priority network of rural roads, and at involving beneficiaries in the management of rural transport infrastructure. (c) Construction of two weighing stations, the first on the RN3 road at the exit of Douala, the second on the RNI road between maltam and Kousseri. (d) Purchase of data processing supplies and equipment of related offices. Chapter 3 -Transport Sector Program 25 (e) Provision of technical assistance and consulting services: (i) assistance during the restructuring of the Ministry of Public Works and the Ministry of Transport, especially for the establishment of a planning mechanism and for the improvement of human resource management; (ii) execution of a plan to improve road safety; (iii) supervision of civil works execution; (iv) execution of a sensitization program to involve beneficiaries in the management of rural transport infrastructure; (vi) preparation of an action plan to develop the international trucking industry; (vii) detailed engineering studies for the preparation of further time-slices of the sector investment program; (viii) project audits and implementation completion report. (f) Training to support MINTP's and MINT's restructuring, the execution of a plan to improve road safety, the implementation of the new maintenance strategy for rural roads, development of SMEs in the road maintenance sector, and to strengthen the Merchant Shipping Department in environmental concerns. (g) Surveys and seminars, including annual consultation between sector stakeholders, Government and donors, and as part of the Systematic Client Consultation process. D. TECENICAL ASSISTANCE, TRAIIING AND SEMINARS 3.45 Although there is no common strategy yet among donors regarding technical assistance and training, there is a growing awareness of the need to reduce long-term technical assistance. Currently, long- term technical assistance consists of: (a) one adviser to the Minister of Transport and the Minister of Public Works financed by FAC; (b) one adviser to the customs department financed by FAC; (c) several consultants to manage the on-going road maintenance project financed by EU: the purpose of the project was not to build local capacity to manage such projects but to encourage the emergence of small and medium enterprises through a pilot operation, transitory between previous projects where road maintenance was executed by force account and future projects where it will be executed by SMEs; the lessons learned from this operation were used in the design of the present program; and (d) one adviser to the paved roads department financed by BMZ, which can be considered as substitute to local staff. Additional long-term technical assistance would be financed by: (a) EU to assist the regional and national committees in UDEAC countries to implement the TIPAC system; and (b) AfDB to strengthen MATGENIE's management capacity; the Government and AfDB agreed that this assistance should be designed consistently with the process of State divestiture of equipment rental activities. Other technical assistance identified in the program would consist in short-term missions, studies or assignments which require capacity that is not found or insufficient in Cameroon. 3.46 The Government and donors are making efforts to promote local consultants. A review of local consulting capacity in auditing, accounting and data processing was initiated by three donors (CFD, CIDA, UNDP) and APECCAM (Association Professionnelle des Etablissements de Credits du Cameroun) in 1993. A similar review of local capacity in transport and public works will be carried out under the Transport Sector Technical Assistance Project. A market of consulting services is developed in parallel with the development of local public works SMEs to sustain the development of local consulting firms. 3.47 The IDA credit would finance 414 person-months of consulting services to support institutional development and to assist in project implementation (Table 8) at a cost of about US$5.4 million. Consulting services would consist in detailed engineering studies and supervision of works (200 person- months), studies (64 person-months) and short-term missions (150 person-months). 26 Transport Sector Project Table 8: Person-Months by Type of Technical Assistance and Subsector Subsector Support to Project Total Institutional Implementation Development Ministy of Public Works 53 211 264 Ministry of Transport 97 53 150 Total 150 254 414 3.48 The list of consulting services to be financed by the credit and the most important terms of reference were agreed at appraisal. The list would be regularly reviewed and updated, if necessary in the course of IDA's supervision missions, and in light of studies' outcomes, and of developments in the sector. Draft terms of reference are presented in Schedule 8. When appropriate, they will be revised to indicate that transfer of know-how is expected in the core output, and evaluation of consultants by the counterparts, and of the counterparts by consultants should be made. Performance of consultants will be reviewed to determine how assignments' objectives were achieved and how well consultants were able to transfer skills and know-how to their counterparts, and to strengthen the local agencies to which they were assigned. Counterparts should be designated before the start of major consulting assignments, with qualifications and ternns of reference acceptable to IDA, and should remain in post until the completion of the activity, in accordance with the strategy regarding counterparts adopted under the Transport Sector Technical Assistance project (TSTA). These counterparts will be responsible for preparing seminars related to project activities and for presenting papers on the conclusions and recommendations of studies. Terms of reference will detail tasks to be carried out by the counterpart staff as part of their training. Consultants' proposals should include the time necessary to train counterparts during execution of studies, and the corresponding budget. 3.49 Training needs to support the restructuring of MINTP are being defined under an on-going study financed by the TSTA project. Training in procurement, civil works supervision and environmental issues in road maintenance will be carried out under the TSTA project. Additional training will be carried out under the TSP. Training needs to support the restructuring of MINT will be defined under a study to be launched as part of the TSTA project. Training in the civil aviation sector, maritime sector, meteo sector, and on the restructuring of the Ministry will be carried out under the TSTA project. Additional training will be carried out under the TSP. Training activities to support the rehabilitation of the customs computerized system and the training strategy to develop SMEs in the road maintenance sector are described in Schedule 9. Total cost of training to be financed from the credit is estimated at US$3.1 million. E. PROGRAM ILEMENTATION PROCUREMENT 3.50 Procurement procedures are not actually harmonized among donors. However, the Transport Interninisterial Coordination Unit (para. 3.75 below) uses IDA standard documents for the selection of consultants for other donors as well. IDA standard bidding documents were also used in the preparation for the tender of civil works in the Douala port channel although the Government decided to postpone the execution of the works after 2000. The creation of the Ministerial Tender Board in MINTP should harmonize the decision-making process in procurement and prevent the creation of various ad-hoc committees at the request of donors. The following paragraphs describe procedures to be used for procurement of works and goods and selection of consultants under the IDA credit. 3.51 During negotiations, the Borrower agreed to the procurement procedures described hereafter. Goods and works will be procured in accordance with the Guidelines for the Procurement under IBRD Loans and IDA Credits (January 1995). Consultants will be selected in accordance with the Guidelines Chapter 3 -Transport Sector Program 27 "Use of Consultants by World Bank Borrowers, and by the World Bank as Executing Agency" (August 1981). Table 9 summarizes the project elements, their estimnated costs and procurement methods. Table 9: Proposed Procurement Methods (Amounts in US$ million) Project Element ICB NCB Other N.B.F. Total Cost 1. Civil Works A. Paved Roads 28.4 82.5 110.9 (17.9) (17.9) B. Earth Roads 36.0 2.5 120.3 158.8 (23.3) (1.7) (25.0) C. Rural Roads 10.9 49.0 59.9 (8.4) (8.4) D. Port 105.4 105.4 E. Rail 99.8 99.8 F. Air 17.4 17.4 2. Goods 0.9 0.2 105.3 106.4 (0.8) (0.2) (1.0) 3. Technical Assistance A. Institutional Development 2.2 19.4 21.6 (1.7) (1.7) B. Project Implementation 4.8 33.9 36.7 (3.7) (3.7) 4. Training and Seminars 3.5 2.4 5.9 (3.1) (3.1) TOTAL 64.6 12.5 10.5 635.1 722.7 (42.0) (10.3) (8.5) (60.7) N.B.F.: Not-IDA Financed. Project executing agencies will follow procedures specific to each donor. ICB: International Competitive Bidding; NCB: National Competitive Bidding Note: Figures in parentheses are the amounts financed by the IDA Credit. Rem: Figures may not add up to total due to rounding. Procurement of Civil Works 3.52 Contracts estimated to cost US$ 500,000 equivalent or more per contract for the rehabilitation of paved and earth roads will be awarded based on ICB in accordance with IDA's procurement guidelines. All ICBs will be advertised in national newspapers and in Development Business. Bank Group's standard bidding documents shall be used. A 7.5 percent margin of preference may be granted in the evaluation of bids to domestic contractors. 3.53 In order to achieve the project's objective of promoting national small and medium enterprises, about 5 contracts estimated to cost less than US$500,000 equivalent per contract for earth road rehabilitation up to an aggregate amount not to exceed US$1.7 million equivalent will be awarded based on NCB in accordance with IDA's procurement guidelines. There is adequate local capacity among local contractors and enough competition is expected from them at competitive prices which would justify NCB. Foreign bidders will not be excluded from participating in NCB. Standard bidding documents shall be used. They shall be reviewed and approved by IDA before their use. 3.54 Rehabilitation of rural transport infrastructure will be limnited to critical spots. Contracts will be scattered in nine districts to be carried out over a project period of 4 years and it is difficult to package them for bigger lots. Contract amounts are estimated to range between US$2,000 and US$250,000. They will therefore be awarded based on NCB. 28 Transport Sector Project 3.55 Contracts specifying completion time more than 18 months will provide for a price adjustment clause. All bids will be opened in public. Evaluation criteria will be included in the standard bidding documents. Contract negotiation will not be permitted. The contract will be awarded to the lowest evaluated responsive bidder. Employment of Consultants 3.56 In order to ensure the satisfactory execution of the project, the Borrower agreed during negotiations that qualifications, experience, and terms and conditions of employment of consultants shall be satisfactory to IDA. The model letter of invitation issued by the Bank Group shall be used. For complex, time-based assignments, and lump-sum contracts, the Borrower will employ such consultants under contracts, using the standard form of contract for consultants' services issued by the Bank Group, with such modifications as shall have been agreed by IDA. Where no relevant standard contract documents have been issued by the Bank Group, the Borrower will use other forms agreed with IDA prior to inviting proposals. 3.57 Following the recommendations of the Country Procurement Assessment Report issued in April 1994, which concluded that procurement practices in Cameroon were inadequate, and to enable a satisfactory procurement process, the following measures were agreed during negotiations: (a) Short-lists shall be a minimum of 3 and a maximum of 6 firms with no more than two firms from the same country. (b) The practice of requesting bid, performance securities and other retention guarantees shall be discontinued. (c) Quality shall be the main criterion for the selection of consultants. Procurement of Goods 3.58 Goods estimated to cost the equivalent of US$100,000 equivalent or more per contract will be procured by ICB. Tenders will be advertised in a national newspaper and in Development Business. Use of standard bidding documents is mandatory. Goods estimated to cost less than US$100,000 equivalent per contract, up to an aggregate amount not to exceed US$208,000 equivalent may be procured under contracts awarded on the basis of NCB, advertised locally, in accordance with procedures acceptable to IDA, including: (a) bids will be opened in public in the presence of bidders or their representatives; (b) there will be no negotiation with bidders between bid opening and contract award; (c) bid evaluation and post- qualification criteria will be defined in precise quantitative and monetary terms; and (d) award will be made to the lowest evaluated responsive bidder. For ICB, a 15 percent margin of preference may be granted in the evaluation of bids offering domestically manufactured goods. Review by IDA of Procurement Decisions 3.59 Prior review by IDA of bid and contract documents will be required for all consultants' services, civil works contracts above US$200,000 equivalent (about 32 contracts) and goods contracts above US$50,000 equivalent (one contract). Chapter 3 -Transport Sector Program 29 Additional Arrangements 3.60 Contracts will be awarded within the agreed bid validity period and only exceptionally, bid validity extension may be requested. In the case of fixed price contracts, requests for second and subsequent extensions will be permissible only if the request for extension provides for an appropriate adjustment mechanism of the quoted price to reflect changes in the cost of inputs for the contract over the period of extension. Procurement Times 3.61 Procurement processing times for major steps up to contract signing were agreed during negotiations. For consultants, time between the transmission of the letter of invitation and the deadline for the submission of proposals should not be less than 45 days. Time between the deadline for the submission of proposals and contract's signature should not exceed 120 days. For goods and works, time between notification of the tender or availability of bidding documents, whichever is later, and deadline for submission of bids should not be less than 45 days. Time between the opening of bids and contract's signature should not exceed 120 days. A first General Procurement Notice was issued after negotiations. General Procurement Notices will be updated annually. DISBURSEMENTS 3.62 Schedule 7 provides the estimated annual financial commitments for the overall sector investment program during the 1995/1996-1999/2000 period. Actual disbursements should take place on a period longer by at least one year. Based on the assumption that a commitment will be disbursed by 30 percent the first year, 50 percent the second year and 20 percent the third year, the disbursements would be as follows: 200- 10010 US$ s60 million i %40- 50-- 20 0 0 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY96 FY97 FY98 FY99 FY00 FY01 FY02 Annual Disbursements Total Disbursements 3.63 The proposed IDA credit would be disbursed on the following basis. 30 Transport Sector Project Table 10: Allocation of Credit Proceeds (USS million) Category Amount Percent of Expenditures to be Financed Allocated 1. Civil Works A. Paved Roads 16.0 75 percent B. Earth Roads 22.4 80 percent C. Rural Roads 7.6 90 percent 2. Goods 1.0 100 percent of foreign expenditures and 75 percent of local expenditures 3. Consultants' services A. Institutional Development 1.7 100 percent B. Project Implementation 3.7 100 percent 4. Training and Seminars 3.1 100 percent 5. Unallocated 5.2 Total 60.7 3.64 The Government will finance taxes, including TCA (Taxe sur le Chiffre dAffaires), and duties on all contracts. Counterpart funds will be deposited on a Primary Roads Account in a commercial bank prior to the signature of any works contract financed from the credit. This account will be audited as part of the project activities. All contracts will be established including taxes and withdrawal applications will identify TCA. The mid-term review (para. 3.81) will assess the overall Government contribution to the project and revise disbursement percentages accordingly. 3.65 To facilitate disbursements and to ensure that funds are available on time to finance the costs of services to be provided under the project, the Government will establish a Special Account in a comnmercial bank on terms and conditions acceptable to IDA. The Special Account will be managed by Caisse Autonome d'Amortissement (CAA), the Government debt management agency, while withdrawal applications will be prepared by the Transport Interministerial Coordination Unit. The authorized amount of the Special Account is CFA 250 million. Requests for replenishing the account will be submitted to IDA monthly or at such intervals as IDA shall specify. 3.66 Disbursements will be made against standard Bank documentation, except for contracts of less than US$100,000 for civil works and less than US$50,000 for consultants and goods, for which certified statements of expenditure would be used. These statements of expenditure will be subject to review by supervision missions and periodic financial audits. The minimum application size for payments directly from the credit account will be US$50,000. 3.67 The credit is expected to be disbursed on a 6-year period. Based on an expected effectiveness in December 1996, the closing date would be December 31, 2002. This is two-year less than the standard disbursement profiles for the transportation sector in Cameroon (see following graph). A shorter period is justified by the execution of maintenance works, which are simpler than new road constructions executed under the previous IBRD highway projects. In addition, the process is underway to select consultants which will carry out the detailed engineering studies, assist MINTP in the bidding process to award the civil works contract, as well as supervise the works. Chapter 3 -Transport Sector Program 31 Graph 1: Disbursement Forecasts 80 - 0 ~~~~~~~--Standard Disbursement 60- Profiles Percent 40 -U-- -Transport 20 ~~~~~~~~~~~~~Sector Program '97 '98 99 '0rooy '02 '03 '03 ACCOUNTING AND AUDITING 3.68 The Transport Interministerial Coordination Unit (TICU) will consolidate data on program costs and disbursements in order to ensure accurate cost analysis for annual planning. The following paragraphs describe the disbursement procedures for the IDA credit. 3.69 Accounting. TICU will maintain records and accounts adequate to reflect, in accordance with sound accounting practices, the operations, resources and expenditures in respect of the IDA credit. Accounting procedures will be defined in a manual prepared by the unit, to be part of the Project Inplementation Plan (para. 3.76) and to be agreed by IDA before effectiveness. 3.70 Auditing. The signature of a contract with the project auditors is a condition of credit effectiveness. During negotiations, the Borrower agreed to: (a) have the records and accounts referred to in the preceding paragraph including those for the Special Account year for each fiscal audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to IDA; (b) furnish to IDA as soon as available, but in any case not later than six months after the end of each such year, a certified copy of the report of such audit by said auditors, of such scope and in such detail as IDA shall have reasonably requested; and (c) furnish to IDA such other information concerning said records and accounts and the audit thereof as IDA shall from time to time reasonably request. 3.71 For all expenditures with respect to which withdrawals from the Credit Account were made on the basis of statements of expenditure, the Borrower shall: (a) maintain or cause to be maintained, in accordance with paragraph 3.69, records and accounts reflecting such expenditures; (b) retain, until at least one year after IDA has received the audit report for the fiscal year in which the last withdrawal from the Credit Account or payment out of the Special Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (c) enable IDA's representatives to examine such records; and (d) ensure that such records and accounts are included in the annual audit referred to in paragraph 3.70 and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, 32 Transport Sector Project together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. PROGRAM AND PROJECT IMPLEMENTATION 3.72 The transport sector reform program would be implemented on a long-term (more than 3 years) period, to reflect the limited capacity of implementation, the order of priority of the reforms and the various progress either in their preparation or in the decision-making process within the Govermnent. The matrix of action in Schedule I details the implementation schedule of the transport sector reform program and identifies the entities responsible for this implementation. The matrix is summarized in table 11. Table 11: Transport Sector Reform Implementation Plan Reform Timetable * Public CAMAIR Creation of a new company with private management Medium term Enterprises REGIFERCAM Commercial operation of railway services for freight through Medium term a concession agreement. CAMSHIP Sale of State participation to the public. Short term CAIvifAINER Sale of State participation to the public or liquidation. Short term SOTUC Liquidation. Short term ONPC Contracting out of dredging. Short term Restructuring. Medium term MATGENIE Restructuring into autonomous entities. Short term Privatization of autonomous entities. Medium term LABOGENIE Restructuring. Short term CNIC Sale of public participation to the public. Medium term Institutions Ministry of Public Restructuring by shifting role toward budgeting, Short term Works programming, planning, and supervising road maintenance works. Creation of a Road Maintenance Account. Short term Ministry of Restructuring by shifting role toward planning and definition Short term Transport and implementation of the regulatory framework. Shippers' Council Change of role and retrenchment from maritime cargo Medium term allocation. Customs Reinforcement of pre-shipment inspection and reconciliation Short term with customs data. Restructuring Long term Rehabilitation of the computerized management information Medium term system. Procurement Creation of MINTP procurement committee with autonomy Short term below agreed thresholds. Regulatory Maritime Strict application of the Liner Conference Code of Conduct Short term Framework transport to the Liner Conference traffic. Full liberalization Medium term Road Transport Revision of urban transport regulation. Short term Air Transport Revision of the Civil Aviation Law. Medium term Transit Transport Creation of the new international transit under customs bond Long term * Near term: less than one year; Medium term: between 1 and 3 years; Long term: more than 3 years. 3.73 MINEFI will be responsible for the preparation of the annual budget and public investment program in collaboration with sector ministries. MINEFI will also be responsible to achieve State divestiture of transport public enterprises, and for the restructuring of customs and computerization of the customs information system. MINT will be responsible for the definition and implementation of policies and regulations and for planning in the transport sector. In the road sector, this will require a close collaboration with MINTP, for example regarding the regulation of truck overload and the planning of road Chapter 3 -Transport Sector Program 33 works. MINT in collaboration with sector PEs will be responsible for the planning of investments carried out by public enterprises, when the State guarantee is required. Public enterprises will responsible for the execution of these investments. 3.74 MINTP will be responsible for the public works component of the project and other related activities. In the sector, there is a general agreement among donors that DGTC should no more be involved as executing agency. With respect to the proposed IDA credit, the Government agreed during negotiations that MINTP would be solely responsible for the road rehabilitation and maintenance component. Thus DGTC shall have no investment execution responsibilities under the Project, nor any procurement responsibilities except those allowed under the Borrower's procurement code. The Government is considering a revision of the institutional framework for NGOs to take into account their increasing role in the country's economic development. Should the revision authorize NGOs to become executing agencies for projects, such arrangements would be implemented under the rural transport infrastructure component of the project. 3.75 The existing Transport Interministerial Coordination Unit which helped the Government prepare the reform program, will continue its coordinating role between externally-financed projects. TICU is well accepted by most donors. It will also be responsible for reporting progress in the execution of the reform program, and consolidating financial data on the execution of the investment program. In collaboration with MINEFI, MINT and MINTP, TICU will prepare annual stakeholders' meetings to assess progress in the execution of the reform program. CAA will manage the IDA credit. 3.76 A Program Implementation Plan will be prepared to help the project coordinator implement and monitor the project. The Plan will be distributed to all executing agencies. The plan would include all procedures agreed with donors, standard bidding documents for works, goods and consultants, the list of goods and semces to be procured and the type of procurement, detailed program costs, the terms of reference of the studies and support services to be carried out, and standard forms for progress reports. The IDA section of the plan should be completed as a condition of credit effectiveness. The sections related to the other donors should be completed as part of the program. 3.77 The Program Implementation Plan will include an implementation schedule for the activities covered by the program. A draft schedule is provided in Schedule 10 for the implementation of activities supported by the IDA credit. It was prepared on the assumption that the credit would become effective in December 1996. The project would be completed over a five and a half-year period on June 30, 2002. REPORTING AND MONITORING 3.78 Program implementation as well as success in achieving program objectives will be evaluated and monitored through a two-fold process: (a) Sector stakeholders, the Government and donors will participate in annual meetings organized to: (i) review adherence to the agreed sector development strategy and progress in implementation of policy measures; and (ii) update the transport component of the Public Investment Program and determine new financing requirements. (b) Systematic Client Consultation will be carried out to obtain feedback from beneficiaries on the improvement of road maintenance, at various stages of the rural transport infrastructure maintenance program (choice of itineraries, type of works, level of satisfaction), and during the preparation of additional policy measures in the transport sector. 3.79 Reporting. The content and timing of progress reports was agreed during negotiations. A draft standard form of progress report is available in project files. The final form would be included in the 34 Transport Sector Project Project Implementation Plan. With respect to the IDA credit, progress reports would be prepared quarterly and in advance of each IDA's supervision mission. The reports would review progress on financial execution and studies. The Borrower would submit an Implementation Completion Report to IDA no later than six months after the closing date of the credit. 3.80 Supervision Plan. IDA staff input into the supervision of the project would take the following form: (a) Portfolio Management. Procurement documents and project-related reports (progress, final, studies, financial statements) would be reviewed at IDA headquarters. (b) Field Supervision. Missions would: (i) review the progress in project inplementation, execution of civil works and consultants' services; (ii) discuss outcome of the Systematic Client Consultation to monitor project's impact; and (iii) monitor key project performance indicators and compare these indicators to agreed targets (Schedule 11). (c) Donor Coordination. Every year, IDA will participate in a coordination meeting attended by sector stakeholders, Government representatives and donors. The objectives of these meetings would be: (i) to follow up on the implementation of the transport sector reform program, on compliance with the Letter of Sector Policy and targets established in the matrix of action; and to agree on necessary adjustments and additional steps; and (ii) review the execution of the sector budget and investment program and agree on an updated program financing plan. A supervision plan for the 1997-2001 IDA fiscal years is proposed in Schedule 12. 3.81 Mid-Term Review. Not later than December 31, 1998, the project coordinator in the Transport Interninisterial Coordination Unit should prepare and hold a mid-term review of the project execution. The review would be organized in collaboration with the Administration, public enterprises, IDA's supervision mission, and representatives of donor agencies involved in the transport sector. The review process would include progress in meeting project's objectives, overall project perfonmance against established and agreed key performance indicators. The mid-term review would provide the opportunity for IDA to assess the Government's continued commitment to the project's objectives and the reform in the transport sector. During negotiations, the Borrower agreed to the carrying-out of a mid-term review and to its objectives. ENVIRONMENTAL ASPECTS Port Rehabilitation 3.82 Environmental protection of the Wouri river which gives access to the port of Douala, of the Douala port area and coastal waters will be improved by the implementation of an Action Plan for port environmental protection. Preparation of the plan and implementation of key recommendations are supported by the IDA credit. A summary environmental assessment was carried out under the Transport Sector Technical Assistance Project. In addition to the impact of dredging (see para. 3.83), environmental concerns are related to: (a) Pollution of water due to urban wastes. Urban wastes are disposed in the channel and are the major cause of pollution. This issue should be addressed as part of the rehabilitation of the sewage system. (b) Oil pollution generated by ships, refineries, and oil plants. This issue requires a revision of the regulation as well as an improvement of the capacity of the institutions (Ministry of Chapter 3 -Transport Sector Program 35 Environment, Department of Merchant Shipping (DMS) in MINT) to monitor the pollution and enforce the regulation. (c) Fire hazards due to hazardous materials. The port authority is preparing an emergency plan. 3.83 An environmental assessment of dredging activities did not qualify environmental impacts as adverse. The following impacts will be monitored as part of the project activities: (a) Salinity intrusion. Although salinity intrusion might result from the rehabilitation of the access channel, which would increase its depth from -5.8m to -7.5m, this has not been a problem in the past, when the channel depth was at -7.5m. (b) Aquatic fauna. Dredging is not expected to create major disturbance in the existing maritime habitats. The aquatic fauna is already distributed over the estuary according to the salinity rate and should adapt to the evolution of the rate. Dredging may improve the quality of the habitats by replacing silt by sand. (c) Disposal of dredged materials. No contamination of the silt in the channel has, thus far, been noted. Should the on-going analysis carried out under the TSTA project validate the analysis carried out in 1990, dredged materials can continue to be safely dumped in the deep sea in the outer channel. Refuse and waste generated by Douala and its industries, which are disposed in the channel and may pollute dredging materials, should be treated as part of the rehabilitation of the sewage system. 3.84 The IDA credit would provide assistance to the Department of Merchant Shipping (DMS) in MINT: (a) to revise the institutional framework and the share of responsibilities between DMS and the port authority; (b) to strengthen DMS's capacity to prepare regulation related to environment and monitor its implementation. This would include preparation of the signature of the MARPOL convention by the Cameroonian Government and implementation of the convention. Road Rehabilitation 3.85 A mitigation plan to address environmental issues in road maintenance is being carried out under the Transport Sector Technical Assistance Project. The plan will include guidelines for the integration of environmental considerations in the design, implementation and monitoring of road rehabilitation projects. A seminar will be organized to disseminate the mitigation plan and the guidelines. PROGRAM BENEFITS Poverty Alleviation 3.86 The program will address the issue of inadequate infrastructure, which is one of the key concem to urban and rural communities identified in the participatory poverty analysis (PPA) carried out in early 1994. The adverse impact of poor transport infrastructure on the poor have been identified in paras. 2.3 to 2.5 above. Appropriate infrastructure maintenance is the third element of the food security strategy which is aimed at the rural poor and where the key objective is to enhance production and to link more efficiently produces to markets. The impact of the transport sector investment programn on the poor will be monitored during project execution through several indicators (number of villagers in the area of influence of the rural roads rehabilitated, number of markets, health centers, and schools to which the access is improved). 3.87 Labor-intensive methods have many benefits: (a) they provide a cost-effective altemative to equipment-based methods for appropriate rehabilitation and maintenance tasks, especially since the CFA devaluation; (b) they generate employment for both men and women; (c) they save in foreign exchange and 36 Transport Sector Project inject cash in the local economy; (d) they facilitate the use of local materials; (e) they transfer the knowledge of road maintenance execution methods to local communities; and (f) they have environmental advantages. 3.88 The road component of the project should mitigate the short-term impact of the restructuring of public enterprises and ministries on employment. The increased amount of financing for road maintenance will create employment opportunities. The promotion of the local construction industry should also have a favorable impact on the labor market, which has been stagnant since 1987. Development of labor-based methods will provide employment opportunities for unskilled workers. Emerging SMEs will provide new opportunities for educated people, for which unemployment has increased from 1.5 percent in 1983 to 30 percent in 1993. The number of person-days generated by the road works included in the program is estimated at 15.5 million, equivalent to about 10,000 jobs during three years. This is about 2,000 jobs more than those which are expected to be lost in the transport sector after restructuring the public enterprises and the ministries. About 3.5 million person-days would be generated by the IDA contribution to the program equivalent to 2,000 jobs during three years. The number of person-days generated by the transport sector investment program will be monitored during program execution. Program Contribution to Improved Efficiency and Sustainable and Coherent Development of the Transport Sector. 3.89 Road Maintenance. Without the program, road infrastructure would continue to deteriorate and its worsening condition would aggravate the adverse impact on the poor. Producers' profits would decrease because of the increase in transport costs combined with the stagnation of produce prices on the local market due to the economic crisis. The competitiveness of export products would decrease or local producers would lose their incentive to produce. In the absence of donors' contribution to the road maintenance program, development of local small and medium enterprises would lack sustainability and the risk would increase of shifting back to execution of road maintenance by inefficient and unaccountable force account. Resources would be largely insufficient and would be inefficiently used by giving priority to costly rehabilitation on a small number of roads or by being scattered all over the network for political reasons making it impossible in both cases to maintain the road network in a sustainable manner. In addition, all rural road programs would be canceled, such programs being almost entirely financed by donors. The on-going programming study will provide a comparison between various maintenance strategies depending on traffic, road condition, and other parameters. The results will have to be continuously adjusted thereafter to take into account the budget constraint. 3.90 The fiscal impact of the road maintenance program has not been quantified. Although revenues from fuel taxes collected from the existing traffic are expected to decrease because of the reduction of vehicle operating costs due to the improvement of road condition, additional revenues will be generated by the induced traffic as well as by the economic activities induced by the improvement of road condition. In addition, it is desirable to reduce the current high level of taxation on road transport which hampers the overall competitiveness of the economy. This is consistent with the fiscal reform prepared under the SAC which aims at simplifyring and streamlining the rate structure, broadening the tax base and reducing distortions. The simplification of the road taxation system (para. 3.11) aims at these objectives as well as at improving tax recovery. 3.91 Privatization and Liquidation of Priority Public Enterprises. After privatization, CAMAIR, REGIFERCAM, CAMSHIP and CAMTALNER are expected to generate profits due to a more autonomous and commercially-oriented management, cost-cutting, and financial restructuring resulting in greater competitiveness. Subsidies should be stopped resulting in savings for the Treasury. In addition, after privatization, the enterprises will generate fiscal revenues which they have not done for several years. Accumulated savings for the Treasury three years after privatization/liquidation compared to the without privatization/liquidation scenario, would amount to US$60 million, and would be equivalent to the additional cost borne by the State for the restructuring (table 12, details are in Schedule 2). Chapter 3 -Transport Sector Program 37 Table 12: Impact on Treasury of Privatization or Liquidation of Priority Public Enterprises CFAF US$ (millions) (million) % 1994-1995 Impact on Treasury of Restructuring (a) 94,4 171.5 Impact on Treasury without restructuring (b) 62,5 113.6 Net "Investment" in restructuring (c) = (a) - (b) 31,9 57.9 1996-1998 Impact on Treasury of Restructuring (d) 27,3 49.6 Impact on Treasury without restructuring (e) 60,4 109.7 Net payback on investment during 96-98 (f) = (e) - (d) 33,1 60.1 1994-1998 Net payback as % of investment (g) = (f) : (c) 103.7 Impact on Treasury without restructuring during 94-98 122.9 223.3 US$1=CFAF550 at time of calculation 3.92 Port Restructuring and Rehabilitation. This component of the program aims at improving the overall competitiveness of the economy. Port tariffs should decrease as a result of the streamlining of the port authority. Contracting out of dredging would result in better efficiency and increased depth of the channel would save waiting-time for the ships entering the channel or leaving the port (see economic justification below). The costs of maintenance dredging would be fully recovered from shipping lines through a specific port duty. 3.93 Regulatory Framework. Progressive liberalization of maritime transport, simplification of the road taxation system, revision of the transport component of the price structure for petroleum products, as well as other measures mentioned above would result in a reduction of transport costs and greater competitiveness of the country's economy. As an example, in CMte d'Ivoire, liberalization of maritime transport cut prices of maritime transport for bananas by half. 3.94 Transit. The rehabilitation of the computerized customs declaration system in Douala would improve customs revenues by reducing fraud. The new procedures to be implemented to accompany the rehabilitation would make the system more efficient, and save time in the transit of goods through the port. Implementation of the transport component of the UDEAC Program of Regional Reforms, including the TIPAC system, would make transit procedures more efficient, and reduce the cost of non-factor services on transit goods. Economic Evaluation 3.95 Rehabilitation of Primary Roads. The main benefit of the component would be a more efficient and cost effective transport system. The maintenance works carried out under the project will reduce vehicle operating costs and their timely execution will postpone a costly reconstruction. Because there are no regulatory obstacles in the transport market, road users are expected to pass to shippers and consumers most of savings they will derive from the improved network. 3.96 In the scenario "with project", the road maintenance strategy is based on several criteria: (a) level of service of the road; (b) traffic volume; (c) geotechnical aspects (relief, type of soil); and (d) climatological conditions. To take into account the scarce resources available for road maintenance, standards and norms of maintenance have been adjusted downwards in departure from the high standards previously applied in Cameroon. Elements on the strategy, norms and standards, unit prices and cost- benefits flows are provided in Schedule 13. The rate of return obtained by applying the strategy to the priority network is well above 40% (Table 13). Such high rates of return are justified because they are calculated for an overall road maintenance program, including routine maintenance, periodic maintenance and rehabilitation on roads in good, fair, poor and very poor condition. Results are based on costs before the January 1994 devaluation. The strategy and its economic evaluation are being updated after devaluation as part of the on-going road maintenance progranuning study carried out under the Transport Sector Technical Assistance Project. 38 Transport Sector Project Table 13: Economic Justification of the Overall Road Maintenance Program Economic Rate of Retum Paved Roads 447% Earth Roads 107% All Roads 262% 3.97 A first-year program of road works was appraised. Roads were chosen within the priority network on the basis of their national importance and their poor condition. The earth-road program is consistent and complementary with a program which began in 1993 with EU financing. The rate of return is 74 percent for the overall program, 100 percent for earth roads and 52 percent for paved roads. Details on the calculation are provided in Schedule 14. Results from sensitivity analysis are shown in the following table. Table 14: Economic Justification of the Road Rehabilitation Program Paved Roads Earth Roads Overall Program Basic Scenario 52% 100% 74% Maintenance costs increased by 20% 44% 71% 54% Vehicle operating costs reduced by 20% 42% 67% 52% Maintenance costs increased by 20% and 34% 52% 41% Vehicle operating costs reduced by 20% Maintenance costs increased by 30% and 27% 36% 30% Vehicle operating costs reduced by 30% Maintenance costs increased by 40% and 20% 22% 20% Vehicle operating costs reduced by 40% 3.98 Rehabilitation of Rural Roads. Roads included in the project will be detennined after consultation with the beneficiaries, but will have to be selected within the 10,952 km priority network agreed by the Government on the basis of the economic justification of the maintenance works. Benefits calculated in the economic analysis were derived from savings in transport costs, increase in agricultural production, and reduction of product losses during transport. The average rate of return of the maintenance works on roads within the priority network is 36 percent (see schedule 15). The economic analysis was carried out in 1987 and updated in 1990 in order to prepare an action plan for the development of rural roads. It has not been updated since then because of the difficulty and the high cost to obtain reliable information on the condition of the entire 28,000 kn-long rural roads network, on the population living along the rural roads, and on the agricultural production. Consultation with beneficiaries should prevent major discrepancies between the rural roads included in the program and the most economically important roads. 3.99 Rehabilitation of the Channel. The benefits of the project are derived from savings in maritime transport costs resulting from an increased number of turnarounds per ship, reduced waiting time for high tide to enter the channel, reduced waiting time at berths and reduced costs of ship calls. Schedule 16 provides the assumptions and the outcome of the economic analysis. Five scenarios (channel depth at -6.5m, -7.0m, -7.5m, -8.0m, -8.5m) were compared to the existing situation (channel depth at -6.0m). Three assumptions were made for the cost of maintenance dredging after rehabilitation (CFAF2,000/m3, CFAF2,500/m3, CFAF3,000/m3). Three traffic scenarios were considered: Table 15: 1995-2010 Average Annual Port Traffic Growth Scenario Mini Medium Scenario Scenario Maxi Import Traffic 0.1% 1.2% 1.8% Export Traffic 1.0% 1.7% 3.1% Total Traffic 0.6% 1.4% 2.5% Chapter 3 -Transport Sector Program 39 3.100 The net present value discounted at 12 percent is positive in all scenarios 23 - Cost of Maintenance considered and all sensitivity studies except 1 9s Dredging one, which indicates that the project is > o -4-/CFAF2,0001m3 largely justified. The net present value is ' as-/CFAF2,6001n3 maximum at a -7.5m depth. The following U. 8 _ --CFAF3,0001m3 chart presents the net present value of the z t 3 0. benefits generated by the dredging in the 2 2 I 4 minimum-traffic scenario. The net present 6.6 7 7.5 8 3.5 value at -7.5m remains positive when Channel Depth (m) benefits are reduced by 50 percent assuming that all benefits gained by foreign shipping lines are not transferred to the Cameroonian economy. 3.101 The rehabilitation of the channel was compared to the construction of dikes which would accelerate water flows, increase auto-dredging and decrease maintenance dredging requirements. The net present value is higher for the rehabilitation than for the calibration when the cost of maintenance is CFAF2,000 per cubic meter. It is slightly lower when the cost of maintenance is CFAF2,500 or 3,000 per cubic meter. The preference given to the rehabilitation is justified by this uncertainty on the cost of dredging and by the large difference between the investment costs of the two alternatives estimated at US$76 million for the calibration and US$13 million for the rehabilitation at a depth of -7.5 meters which does not result in a significant difference between the benefits estimated for both alternatives. 3.102 Other Investments. (a) Air Transport: The rehabilitation of the Douala airport was included in a CFD credit provided to Cameroon to accompany the privatization of management of five major airports in 1994. The detailed engineering study needs to be carried out to estimate the cost of the operation. The capacity of the airport management company to service the debt following this investment will be assessed when the cost is estimated. (b) Rail Transport: The feasibility studies for the modernization of telecommunications and the rehabilitation of the track are to be launched as part of the Transport Sector Technical Assistance Credit. Modemization of the telecommunications and rehabilitation of Yaounde-Kaa are included in two on-going projects financed by BMZ. (c) Port: The feasibility study for the modemization of the container terminal was carried out in 1990. The rate of return of 10 percent was expected to be attained with a container traffic above 100,000 TEUs (ton equivalent units). The container traffic has continuously decreased since 1991 and was of 67,285 containers in 1994. The project has been subject to several revisions and its technical content is not definitive yet. It is financed by a 1987 OECF loan. The rehabilitation of berths, aprons and carriageways and the extension of the timber storage area have no financing and have not been subject to feasibility studies yet. The studies should be carried out before the financing of the investments is confirmed. Investments in equipment have not been subject to an economic analysis but to a financial analysis (see below). (d) Customs: The experience in other countries hints at a significant increase in Govemment revenues, as well as at a reduction of transport costs due to reduced delays resulting from inproved procedures. A more detailed assessment of financing requirements than the estimate provided in this report should be carried out and subject to economic analysis. The restructuring of customs and the modemization of the computerized management information system have no financing yet. 40 Transport Sector Project ONPC's Financial Perspectives 3.103 A financial evaluation of the port authority (ONPC) was carried out to assess its capacity to absorb financially its investrnent plan (Schedule 5) and to service the debt. The investment plan includes on-going projects (purchase of a new dredger and a tug-boat, rehabilitation of the carriageways, implementation of a computerized management information system, modernization of the container terminal) as well as new projects (channel rehabilitation; berth rehabilitation; purchase of a service boat; equipment, building and warehouse rehabilitation; and extension of the timber storage area). The financial analysis was carried out assuming three traffic scenarios as in the economic analysis, five self-financing percentages of new investment, two interest rates corresponding to concessional and commercial borrowing. A sensitivity study assumed a 20-percent increase in the investment cost. Detailed results are available in the Project File. Schedule 17 provides during the 1995/1996-2010/2011 period the annual income statement for the base case, assuming a minimum traffic growth of 0.6 percent annually, a 40 percent self-financing, concessional borrowing and the current tariff structure, and cash-flow statements for scenarios assuming two traffic growths, two self-financing percentages, two interest rates and an increase in investment costs by 20 percent. 3.104 Under the base case, the port would generate sufficient cash-flow to contribute by 40 percent to the financing of the investment program. Commercial borrowing would result in a negative net income starting in 1999 and a negative net cash flow starting in 2006. The outcomes of the financial evaluation in the base case scenario as well as in the sensitivity analysis, however, evidence the inefficiencies of the current cost and tariff structure as indicated in para. 2.21. To improve this situation and preserve the financial viability and competitiveness of the port, the port needs to implement the action plan described in para. 3.32 starting by completing the implementation underway of the cost accounting and management information system. PROGRAM RISKS 3.105 Lack of Government commitment is a risk common to the overall transport sector reform program, and the Government may be inclined to delay implementation of the adjustment measures because of the risk of social unrest. This risk is mitigated by the adoption of the reform program by the Government and its internalization during the long preparation process. The absence of such program was among the causes for the failure of the institutional component in the previous transport projects (para. 4.3). Government is also aware that delays in the implementation of adjustment measures would have negative consequences on the recovery of the economy. These consequences would be worsened by donors becoming reluctant to provide financial support to the Government. Progress in the implementation of the transport reform program will be closely monitored. Beneficiaries will be consulted during the program implementation to generate a constituency for reform. Annual meetings will be organized with participation of sector stakeholders, the Government and donors to assess reform implementation and define action plans in order to meet reform targets. 3.106 Lack of local resources due to the current financial constraints is also a risk for the program, should counterpart funds to externally-financed projects be insufficient. In the specific case of IDA's contribution to the transport reform program, the risk of insufficient counterpart funds will be mitigated by: (a) Making a satisfactory macro-economic framework a condition for presentation of the IDA credit to the Board: The Credit is presented to the Board after an agreement was reached between the Government, the IMF and IDA and after a new Structural Adjustment Credit was approved by the Board of the Association on February 8, 1996. (b) Improving the resource allocation process: The Government will be requested to deposit the counterpart funds for any works contract financed from the credit on a project account in a commercial bank prior to the signature of the contract (para 3.64). This is expected to reduce the unit prices of the civil works contracts and increase the quantities of works Chapter 3 -Transport Sector Program 41 which can be carried out with given resources compared to the quantities of works estimated based on current unit prices, therefore is expected to be an incentive for the Government to provide the counterpart funds. 3.107 The risk of insufficient resources to finance recurrent costs is a second risk related to the current financial constraints. This risk will be progressively mitigated in the road maintenance sector by establishing reasonable and sustainable targets in view of the financial constraints, by progressively raising these targets, and by linking external donor's financing of road civil works to the Government meeting these targets (para. 3.25). Timely allocation of funds and execution of maintenance contracts in accordance with the targets would be a condition for IDA financing subsequent slices of road maintenance works. Improved planning, a more transparent use of funds resulting from the creation of the Road Maintenance Account, and a satisfactory macro-economic framework will also alleviate the risk of insufficient resources to finance recurrent costs. The second risk will be mitigated in the port sector by increasing involvement, in the management of the port authority, of port users, which have an incentive to maintain the channel, and by creating a transparent mechanism to collect revenues and to pay dredging maintenance executed by contract. 3.108 Other risks identified are related to: (a) Economic Justification of Investments Included in the Project: To mitigate the risk of executing investment with a negative net present value, the economic analysis for each investment will be updated on the basis of cost estimates resulting from the procurement of contracts. Consistency will be verified between road rehabilitation works proposed in the program and the outcome of the on-going planning and programming study. Rehabilitation standards will be reduced if necessary to provide a positive net present value. Annual traffic counts are included in the TSTA project to provide recent traffic data to update the economic analysis, the programming of works, as well as assess the project justification after completion. These arrangements will be included in the program implementation plan. (b) Rural Transport Infrastructure: The risk is that improvement of rural transport infrastructure will not benefit women although women are responsible for most transport activities in the household. Load carrying is considered women's work. Entrenched cultural and attitudinal barriers need to be overcome to prevent this attitude to prevail. The risk will be mitigated by carefully paying attention to include women into the planning and consultation process for the establishment of the rural transport infrastructure program. A sociologist will be included in IDA's supervision team to ensure that representative groups will be consulted and key target groups will benefit from the training and sensitization program related to the participation of communities in rural transport infrastructure management. (c) Privatization of PEs: (i) CAMAIR: Some actors in the Government are still reluctant to accept the proposed restructuring of air services in Cameroon, and have still to be convinced that new market-based air services will be viable. The proposal to engage an interim management team to manage airline operations commercially with full autonomy while a new market-based air service is being set up, constitutes an interim and realistic solution to avoid a protracted debate with the Government on up-front full liquidation of CAMAIR. It would satisfy the immediate political objective of maintaining the flag carrier as a national symbol. (ii) REGIFERCAM: The risk is that potential private investors might be uninterested in operating the railway. Should privatization appear impossible, the situation would have to be reassessed in order to agree on the parameters under which the company could continue to operate with a minimum of subsidies. (iii) 42 Transport Sector Project CAMSHIP, CAMTAINER: Several potential investors have expressed interest in investing in CAMSHIP. Should the privatization be unsuccessful, however, the company should be given full autonomy as indicated in the Cameroonian Law on Public Enterprises enacted in 1995 and would have to compete and survive or disappear on a market which is going to be liberalized as part of the transport sector reform program. Should the privatization of CAMTAINER fail, the company should be liquidated due to the presence of private competitors on the market. (d) Restructuring of PEs (ONPC, MATGENIE, LABOGENIE): The risk is that the restructuring be not implemented or that it fail. Implementation of restructuring depends on the Government commitment (see para. 3.105 above). In the case of ONPC, the second risk is mitigated by the involvement of private operators in ONPC's Board of Directors. In the case of LABOGENIE, the impact of failure would be mitigated by the opening of the market for road laboratory works to private competitors. In the case of MATGENIE, the risk of failure is mitigated by distributing it among several entities to be progressively privatized. (e) Financing of severance payment: Lack of financing is a risk of delay in the execution of the restructuring and privatization program mentioned above. Mitigation of this risk is among the measures to mitigate the risk of failure of the overall adjustment program. (f) Transit: The risk is that the transport component of the UDEAC Regional Policy Reform Program be stalled for several reasons: (i) difficulties for the UDEAC countries to coordinate a reform program that has to be implemented in several countries; (ii) obstruction because of the inefficiency or vested interests in customs; and (iii) difficulty to find the expertise required to support implementation of the TIPAC. These risk can hardly be mitigated by specific countermeasures. Competition between countries, especially the reopening of the Congolese itinerary which can be used for the transit of Central African Republic goods should be an incentive for Cameroon to improve its transit procedures. This incentive, however, remains weak as shown by the competition between Cameroon and Nigeria for the transit of Chadian goods which has had no effect on procedures in Cameroon. The macro-economic incentive is likely to be the stronger for Cameroon, due to the necessity to restructure and make customs more efficient, which would benefit to the land-locked countries. (g) Environmental Impacts: Although, as mentioned above, no major adverse environmental impact is expected, a monitoring procedure will be put in place in order to take preventive mitigation measures when necessary. Chapter 4 - IDA Assistance Strategy to the Transport Sector 43 4. IDA ASSISTANCE STRATEGY TO THE TRANSPORT SECTOR A. LESSONS LEARNED FROM PAST EXPERIENCE 4.1 Structural Adjustment. Experience in PE restructuring under the Structural Adjustment Program (SAP) underlines the importance of State divestiture from PEs in commercial sectors, and implementing a satisfactory institutional framework to ensure such divestiture. Performance contracts used to restructure PEs under the SAP failed because of a lack of commitment from both Government and PEs. Privatization and liquidation operations launched at the same time also failed for the same reason, and because of an unsatisfactory institutional framework. 4.2 Projects in the Transport Sector. Since 1970, the Bank Group has contributed to transport sector development in Cameroon, with 13 projects totaling US$500 million equivalent. Projects were mostly in the highway (75 percent of the amount lent), railway, and port subsectors. Ten projects were audited after completion. Five transport sector memoranda provided the sector analysis to prepare the projects. 4.3 Although the audit reports observed that the Bank's objectives for the sector had been "consistent, sound and transparent, improving efficiency and strengthening self-financing operations", it concluded that while, generally, all physically measurable targets were successfully met, no comparable success was registered in the areas of financial performance, maintenance activities, and institution building. The audits attributed the poor institutional and financial performance of the transport sector to the Government's lack of commitment to genuine change and, more importantly, to the lack of a coherent sector program. The audits underlined that the Bank had advocated a comprehensive program, and that its absence had meant that individual subsector operations were neither integrated nor additive. The 1989 audit of the Feeder Roads, Highway IV, and Railway projects concluded that an overall sectoral approach was overdue, and recommended preparation of an action program pursuing a coherent approach of sector investment planning and PE reform, and the adoption of this program by Government and donors as a basis for integrated sector financing. 4.4 These lessons have led to IDA contributing to the preparation of a Transport Sector Reform Program, described above, which places transport sector development and investment in a policy-based, sectorwide framework supported by Government and donors. The preparation of this program was a critical contribution to Cameroon's efforts to restore the performance of its economy and competitiveness. The Government and IDA carried out a joint economic and sector work to analyze issues in the transport sector in order to devise action plans and priorities to restore sector efficiency (Transport Sector Memorandum, dated June 30, 1993, Report No. 11430-CM). The process for sector analysis, and the preparation of the Transport Sector Reform Program, aimed at internalizing the rationale for reform and recommendations by broadly involving Government institutions and staff, private operators and donors. To marshal the necessary understanding and political commitment needed to implement the proposed reforms, a Transport Interministerial Group was created to represent all Government organizations involved in the transport sector. Several seminars were organized to discuss with the private sector the reform in the road maintenance, port, transit and maritime subsectors. The Government also called several donor meetings to discuss sector issues and action plans. The Government intends to organize a donor meeting to present its declaration of policy for the transport sector, the matrix of actions to implement this policy and the investment plan to support this implementation. MINEFI is coordinating the preparation of this donor meeting with meetings in other sectors, which could be consolidated in a single Consultative Group meeting. 4.5 The most recent Implementation Completion Report (Six Highway Project, Ln. 2584-CM) indicated the following additional lessons: 44 Cameroon - Transport Sector Project (a) Road Maintenance Organization: When the sector lacks strong leadership and commitment to efficiency and accountability, the role of the institution in charge of road maintenance needs to be concentrated on planning, programming, budgeting and supervising road maintenance works. Work execution should be contracted-out to achieve better efficiency and adequacy between the program of works and available resources. Financing of inputs as done under the Sixth Highway Project should definitely be discarded. (b) Project Design and Implementation: To continue in a direction which has become inappropriate is likely to result in poor implementation and performance and lack of achievement of the project objectives. In such a case, the project ought to be adjusted or restructured where necessary. (c) Technical Assistance, Capacity Building and Human Resource Development: Technical assistance should be provided in an environment which is committed to building on the expertise thus provided. This requires a strong leadership capable of developing and implementing a human resource development strategy. Capacity building has to be considered on a long-term basis. Training is most useful when immediately applicable in the day-to-day work environment. B. RATIONALE FOR IDA INVOLVEMENT 4.6 The proposed program is consistent with the Country Assistance Strategy (CAS). The CAS was discussed by the Board in conjunction with the SAC on February 8, 1996. It is designed to draw Cameroon out of its current fiscal impasse and to progressively bring the economy onto a path of higher and continuous growth. The Government and IDA agreed that long-term development can only be achieved by substantially improving fiscal perfonnance in order to generate additional resources to finance priority development expenditures and to cover debt service obligations. IDA assistance will thus concentrate on: (a) stabilizing public finance and improving public sector efficiency; (b) creating an environment conducive to private sector development; and (c) targeting poverty alleviation. The strategy was based on a Public Expenditure Review conducted in April 1995, a Poverty Assessment carried out in April 1995, a Private Sector Assessment to be completed in FY96 and a National Education Forum held in May 1995. 4.7 IDA's participation in the program will help achieve the CAS's objectives by: (a) contributing to macroeconomic stabilization through divestiture of transport public enterprises aimed at reducing the drain on the budget caused by subsidies and at increasing fiscal revenues generated by the profit-making public enterprises after privatization; (b) promoting a favorable environment for private sector development by revising the institutional framework in the public works' subsector, and shifting road maintenance execution from force account to contract; and (c) alleviating poverty by developing labor-intensive methods in road maintenance works and promoting participation of beneficiaries in sector management. 4.8 Four main reasons justify IDA involvement in the transport sector: (a) Because of the importance of the transport sector in the economy, the transport reform program is at the core of adjustment. Therefore, IDA involvement in the transport sector will strengthen the macroeconomic adjustment supported by the adjustment credit which was recently approved. (b) IDA has built a wealth of experience in all aspects of transport management and services delivery outside as well as in Cameroon. The Government will benefit from this experience through IDA involvement in the seftor. (c) IDA presence in the sector has been and will continue to be catalytic among the donor community. Although most donors support the sector-wide approach taken by the Chapter 4 - IDA Assistance Strategy to the Transport Sector 45 Government to prepare the transport reform program, this support remains fragile. The chance of success of the reform program will increase if encouraged by donors coordinated and committed by culture to the sector-wide approach involving donor coordination. IDA's withdrawing from the sector would send to other donors active in the sector an unjustified negative message on the capacity and commitment of the Government to carry out its reform program. (d) The dialogue with the Cameroonian Government would be jeopardized would IDA withdraw from the transport sector after several years of discussion on the transport sector reform program and when the Government is committed to the transport sector reform and expresses financing needs in support of the reform, that cannot be entirely fulfilled by other donors. IDA's withdrawing would weaken those in the country who support the reform and reduce the chance of success of the reform. 4.9 Although some Government decisions on the transport sector reform program are still pending, and the ways some decisions taken by the Government are going to be implemented are still to be established, the proposed project is justified by an overall satisfactory status of the reform process. Most important decisions were taken by the Government, such as on the State divestiture of operations executed by public enterprises. Liquidation of SOTUC shows the Government commitment to the implementation of its decisions. Several other reforms will be implemented in the short term, such as contracting out the dredging of the Douala port access channel and sale of public participation in CAMSHIP and CAMTAINER. Other reforms to be implemented in the longer term are well underway, such as the privatization of air and rail services. Postponement of the project until additional reforms are implemented would unnecessarily increase the burden on the economy caused by the poor condition of infrastructure and put the implementation of the program at risk by not providing the much needed financial relief to accompany the short-term adverse impact of the reform. C. IDA's ASSISTANCE STRATEGY TO THE TRANSPORT SECTOR. 4.10 IDA would assist the Government in implementing the transport sector reform program through several instruments: (a) Transport Sector Technical Assistance Credit (Cr. 2703-CM, April 11, 1995): The credit provided support in policy preparation, institutional development and helped to prepare the sector investment plan. It finances the financial advisers who assist the Government in the privatization or liquidation of CAMAIR, REGIFERCAM, CAMSHIP, CAMTAINER and SOTUC. It will continue to accompany the implementation of the transport sector reform program through various training activities, seminars, and provide additional technical assistance to continue to prepare reforms that are going to be implemented on a long-term period. The project status is summnarized in Schedule 6. (b) Transport Sector Project: The project will support the road maintenance component of the sectoral investment plan and, in conjunction with the Transport Sector Technical Assistance Credit, reform implementation in the road maintenance subsector. (c) Enterprise Divestiture and Competition Credit (FY97): The proposed credit would support State divestiture of public enterprises including the civil aviation company and the railway company. (d) Social Development Credit (FY98): The proposed credit would support poverty alleviation through measures to stimulate growth and through a program of targeted interventions which would include urban labor intensive civil works. 46 Cameroon - Transport Sector Project 5. AGREEMENTS REACHED, COND1TIONS AND RECOMMENDATION 5.1 The following events took place before negotiations: (a) The MINTP's and MINT's FY96 Budget and PIP were adopted in consultation with IDA (para. 3.35). (b) The financial advisers to assist the Government in the privatization of air services, rail services, CAMSHIP and CAMTAINER were appointed (para. 3.4, 3.8, 3,13). (c) Services of the urban bus company were stopped and the liquidator was appointed (para. 3.10). (d) The Road Maintenance Account was created (para. 3.24). (e) A program to transfer progressively road maintenance from force account to contractors was transmitted to IDA (para. 3.25). (f) An action plan for MATGENIE's restructuring was transmitted to IDA (para. 3.29). (g) An action plan for LABOGENIE's restructuring was transmitted to IDA (para. 3.31). (h) The Government indicated its no-objection to contracting out the dredging of the access channel to the port of Douala (para. 3.32). (i) An action plan to improve financial and operational management of ONPC was transmitted to IDA (para. 3.32). (j) ONPC's investment plan for FY96-00 was transmitted to IDA (para. 3.32). 5.2 The following agreements were reached during negotiations: (a) Letter of Sector Policy and Matrix of Action (para. 3.3). (b) Road works to be included in the project to have an ERR of not less than 12 percent for paved and earth roads and 10 percent for rural transport infrastructure (para. 3.108). (c) MINTP's and MINT's budget and PIP to be adopted in consultation with IDA (para. 3.35). (d) Counterpart funds for any works contract financed from the credit to be deposited on a Primary Roads Account in a commercial bank prior to the signature of the contract (para. 3.64). (e) Funds deposited on the Road Maintenance Account are sufficient for and applied to financing maintenance of the roads included in the priority network which have been built, rehabilitated or maintained with external financing since January 1, 1990 (para. 3.25); (f) Annual audits of the Road Maintenance Account and the Primary Roads Account be transmitted to IDA (paras. 3.24 and 3.64). Chapter 5 - Agreements to be Reached, Conditions and Recommendation 47 (g) Procurement, disbursement, accounting and auditing, and reporting procedue, implementation arrangements, performance targets (paras. 3.50 to 3.61, 3.64 to 3.71, 3.73 to 3.76, 3.79 to 3.80). (h) A mid-term review to be carried out not later than December 31, 1998, and a meeting to be organized every year with participation of sector stakeholders, Govemment and donors representatives to review progress achieved in carrying out the transport sector reform and investment program and to set up measures to ensure the efficient carrying out of such program and the achievement of its objectives (paras. 3.80 and 3.81). 5.3 Conditons of Board Presentation. (a) Signature by the Government of the Letter of Sector Policy and the Matrix of Action (para. 3.3). (b) Draft revised institutional and regulatory framework for urban transport tansmitted to IDA (para. 3.10). (c) Funding program of the Road Maintenance Account established (para. 3.25). (d) Decree issued for the creation of MINTP's Tender Board (para. 3.33). (e) Performance targets agreed to improve financial and operational management of ONPC (para. 3.32). 5.4 Condtions of Credit Effectiveness. (a) New revised institutional and regulatory framework for urban transport enacted (pam. 3.10). (b) Primary Roads Account and Road Maintenance Account opened and the inital deposit has been paid therein. (para. 3.24 and 3.25). (c) Five regional directors of MATGENIE appointed. (para. 3.29). (d) LABOGENIE's operating expenditures reduced by 30 percent in relaton to LABOGENIE's FY94 accounts (para. 3.31). (e) Reorganization plan for MNP submitted and satisfactory to IDA. (para. 3.33). (f) Completion of the Project Implementation Plan (para. 3.76) (g) Selection of the project's auditor (para. 3.70). 5.5 Suppkmental Letter. A supplemental letter will be attached to the Credit Agreenet to insure that: (a) standard procurement times between critical steps are complied with (pan. 3.61); and (b) DGTC shall have no investment execution responsibilities under the Project, nor any procurent re bilities except those allowed under the Borrower's procurement code (para. 3.74). 5.6 Condition of Disbursement on the Paved Road Component. Collection of statistics on truck loads has started at least at two weighing stations on the Douala-Yaounde road (para. 3.12). 48 Cameroon - Transport Sector Project 5.7 Reconmmendation. With the above agreements and conditions, the proposed project is suitable for an IDA credit to the Govermment of Cameroon of SDR 41.7 million (US$60.7 million equivalent), on standard IDA termts. Schedule 1 49 Schedule 1: Letter of Sector Policy and Matrix of Actions I/ INTRODUCTION a) Cadre macro-economique Dans le cadre du Programme de Relance Economique, le Gouvemement camerounais a adopte un nouveau programme de r6formes au niveau des politiques, des institutions et des allocations des ressources, pour restaurer la comp6titivite de 1'economie et, ainsi (i)inverser son d6clin et celui de la pauperisation de ses populations de ces huit demi&res ann6es,(ii) r6tablir les equilibres macro-6conomiques, intra-sectoriels et financiers et (iii) sortir de la crise economique que connait le pays. Ce progranmme de reformes comporte quatre volets essentiels, A savoir: (i) le realignement de la parit6 du franc CFA aux fins de ramener le taux de change effectif reel A un niveau compatible avec le retablissement des 6quilibres macro-economiques et une croissance 6conomique durable; (ii) I'adoption d'une politique de gestion de la demande interieure qui permette de juguler l'inflation, une fois effectu6s les ajustements des prix resultant de la d6valuation; (iii) la reduction de l'intervention de l'Etat dans l'economie et (iv) la poursuite du processus de liberalisation du commerce exterieur et 1'61imination de toutes les contraintes pesant sur le libre fonctionnement des marches de l'emploi des biens et des services. Ce programme de r6formes consacr6 dans le memorandum du Gouveonement de Mai 1994, marque un tournant par rapport aux politiques menees dans le passe et qui, malgre certains progres, n'ont pu sortir le pays du declin economique dans lequel ii est plonge depuis le milieu des anndes 1980. Il vise aussi a corriger les desequilibres internes et a restaurer un climat propice au retour a la croissance. Le programme de reformes a recu l'appui du F.M.I. dans le cadre du 4eme accord de confirmation de septembre 1995, de la Banque Mondiale avec le cr6dit d'ajustement structurel approuv6 en f6vrier 1996 ainsi que d'autres bailleurs de fonds par des prets A l'ajustement structurel. b) Depenses publiques et investissements publics Le nouveau programme de reformes eablit les priorit6s en matiere de d6penses de fonctionnement et d'investissement et alloue une plus grande proportion des ressources aux d6penses non salariales et particulierement aux secteurs cruciaux pour le d6veloppement a long terme A savoir: I'eucation, la sante, I'agriculture et l'entretien des infrastructures de transport. A cet egard une plus grande part des investissements publics devra etre financee sur des fonds exterieurs et &re orientee vers des secteurs porteurs de developpement, s6lectionn6s sur la base de criteres stricts de rentabilite conomique en consultation avec la Banque Mondiale. c) R6forme des entroprises publiques Le d6sengagement de 1'Etat des entreprises publiques par le biais de la privatisation ou la liquidation, constitue aussi un element de ce programme. Les entreprises qui resteraient dans le portefeuille de l'Etat auront, du fait de ce d6sengagement, une tres grande autonomie de gestion. d) Dettes et arrier6s des ontreprises publiques Les dettes et les arri6r6s des entreprises publiques, d6ja repris par le Gouvernement, doivent etre traites globalement dans le cadre des accords conclus avec la Banque Mondiale et le F.M.I. Les autres dettes, y compris les indemnites de licenciement des personnels de ces entreprises, devront 6tro traitees dlans le cadre de leur privatisation ou liquidation. 50 Cameroon - Transport Sector Project e) Mise en oeuvre du Programme de Relance Economigue Le premiere phase du programme de relance economique vise au retablissement de 1'equilibre mon6taire et fiscal, a la liberalisation des marches, aux encouragements a la production, pour soutenir la croissance et reduire la pauvrete. La deuxieme phase est basee sur des reformes structurelles dans les secteurs productifs, particulierement l'agriculture, de facon a assurer l'augmentation des exportations dans un nouvel environnement economique competitif f) Traduction du Programme de Relance Econonique dans le Secteur des Transports Des reformes structurelles et financieres fondamentales doivent etre entreprises dans le secteur des transports qui est un secteur clef de l'economie, indispensable a la relance. En effet, le secteur des transports souffre d'une faible perfornance des institutions, d'une politique privilegiant les investissements a 1'entretien et d'une allocation des ressources inadequate. L'absence de ces reformes constituerait une contrainte majeure pour le programme de relance. De plus, les principaux modes de transport presentent une faible efficacite et des couits eleves resultant: (i) d'un entretien insuffisant des infrastructures et des equipements, et (ii) d'une detdrioration des perfornances techniques et financieres des entreprises publiques du secteur, ce qui constitue un obstacle majeur a la competitivite de l'economie et un lourd fardeau pour les finances publiques. Le Gouvemement adopte la presente strategie pour l'ensemble du secteur des transports, en coherence avec le programme de Relance Economique. II/ STRATEGIE DU SECTEUR DES TRANSPORTS a) Objectif L'objectif du Gouvemement est d'assurer une meilleure efficacit6 et un d6veloppement durable et coherent du secteur des transports pour que celui-ci contribue a la croissance de l'economie du pays, a la r6duction de la pauvret6 et a la protection de l'environnement. b) Strateie La strat6gie pour atteindre cet objectif est: (a) d'am6liorer la gestion des politiques sectorielles en redefinissant le r8le de l'Etat pour le desengager des operations transferables au secteur prive et le concentrer sur les taches de planification, de reglementation et d'laboration des politiques, (b) d'equilibrer l'allocation des ressources entre investissements prudents et d6penses d'entretien en renfor,ant la capacitd institutionnelle et en assurant une mobilisation permanente des ressources, (c) d'ameliorer l'efficacite du secteur par une r6forme du cadre reglementaire visant la liberalisation, une meilleure competitivite et la mise en place des mecanismes incitatifs de march6s et (d) de mettre en place une politique de protection de l'environnement. La strategie pour le secteur des transports est partie integrante et depend des programmes macro- economiques et financiers y compris la strategie concemant les d6penses courantes, les investissements publics, le nouveau cadre institutionnel du Gouvemement et le reglement des dettes et des arri6r6s des entreprises publiques. Schedule 1 51 III/ PROGRAMME SECTORIEL DES TRANSPORTS Pour la mise en oeuvre de cette strategie, le Gouvemement a prepare un programme global, a moyen terme a executer en plusieurs phases: La premiere conceme la privatisation ou la liquidation des entreprises suivantes du secteur des transports aerien, ferroviaire, urbain et maritime (CAMAIR, REGIFERCAM, SOTUC, CAMSHIP et CAMTAINER), qui ont un grand impact sur l'efficacit6 du systeme des transports et les finances publiques. Cette phase porte egalement sur la liberalisation du transport urbain. La deuxieme phase portera entre autre sur: 1- Un programme de rehabilitation du reseau routier, du chenal d'acces au port de Douala, du chemin de fer et de l'outil portuaire, 2- Un programme d'entretien de ces infrastructures de transport faisant recours a une plus large privatisation de l'execution des travaux, au developpement des techniques a haute intensite de main d'oeuvre et, pour l'entretien routier, a la definition d'un reseau prioritaire. 3- Le desengagement de l'Etat du Matgenie et la restructuration du Labogenie et sa mise en concurrence. 4- La clarification des missions et la reorganisation des Ministeres charges des routes et des transports. 5- La restructuration de l'ONPC pour ameliorer les perfomiances portuaires et assurer les services au moindre cout. 6- La redefinition des missions du CNCC dans le sens d'un meilleur appui aux chargeurs. 7- La liberalisation du transport maritime et du transport aerien. 8- La facilitation du transport en transit dans le cadre du Programme R6gional de R6forme de l'UDEAC. 9- Une mise en coherence des differentes reglementations avec le programme de reformes. IV/ PLAN D'ACTION Le plan d'action du Gouvemement pour mettre en oeuvre cette strategie figure en annexe a la presente declaration. MATRICE D'ACIIONS DE LA DECLARATION DE STRATEGIE SECTORIELLE DES TRANSPORTS ow zw fl ........................l I Ersrs Rear~ l'eEiact darn enrxia, aeliorer Liquidation/privdisation, Pahl_s hs finances publiques, aur0er l'enddtamet at (SOThC, hIaccrnlation darn ui*6ers; RE GI FERCAM , CAMSHIP, CAMTAINER) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1.1 SOTUC - Lquidation de la SOTUC -Accord du Gouvernement suir les modalites de liquidation Accord donne 22V02/95 - Cessation das adtivites datla SOTUC Fait 22V02/95 - Racruta t du liquidateur dt da IAsaiatant Tachinique aupres du Comite da Fait 2S104/95 Suivi - Cloture aalqiato rcau de l iquidation cour Novernbre 96 12X CAMAIR - Reatiruturation Icgale dt fintinciere de - Recrutemernt d'un Conseiller Fuinancier Fait 16/02/96 lIqexloitation des services du transport aerien - Choix da l'option de pnivatisation Mau 1996 - Privatisation _______________________ -Iancamant del'AO. porir la realisation de l'option choisie________ AnOti 1996 1.3 REGIFERCAM -Mise en concession commerciale de - Recrutaenat d'un Conseiller Financier Fait 6/12/95 I'exploitation - Decision du Gouvemanment sur Ic devenir dt lea modalites d'exp,loitation des Etude en cowrs Juillet 96 services da transport ferroviaire de voyageurs. - Lancement datla pres6eledion de t'actionnire de reference da la sociele Dossier da preselection Avril 96 conoessionnaire . pret - Lancement de l'A.O. pouir le choix de l'actionnaiire de reference Dossier d'AO. an cours da Juillet 96 preparation . ~~~~~~~~~~~- Signature datla convention da concessioni Odtoore97 - Entree an vigueur datla concession 1.4 CAMSHIP Ddsengaemnent de l'Etat dars kc capitali social - Rcruztement d'un Conseiller Financier Fait 23/10/95o - Misc en venta des actions En cours Avril 96 < ..... : ................ ........ .vm ..iCSH | 1 AM ND n.t.Ea t o liq.. idation en..rapport.a.. c..ap.i.a..s....o......a............... .. .... ..... .............. ... ... .. .... ..... .pri..a.i..a.ion. .d a.a.. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __..... ....... . ....... .S.I _ E . ..._'wSrRAThI ACTIONS ETAT _ i DWACHlt)NS OBECflFS_ D'AVANICEMENT -CALEWIR M 2 Reformes Amelioration de r.fficacit6. Cltification des s_t1me responsabili. Renforanet de la capacite des ressources humaines 2.1 MINTP Recentrage des adivites sur la d6finition des -Etude POE en vue de la reorganisation du Ministere des Travaux Publics En cours politiques, la pbnificaton, la progammation et la budgetisation des inve_tisemenjs routien et - Mise en oeuvre du POE _ J~~~~~~~~ii-:vfril |tiav ,~tr z. Aobt 96 2.2 MINT Concentrer le MINT sur la planification des Etude des POE MINT en vue de la rorganisation. Recrutement du consuiant Juillet 96 mvesitssmenAts du secteur, la programmation, en cours 1'61aboration, rapplication et le suivi des - Mise en oeuvre des POE. D6cembre 96 politiques et des r6glementations sectorielles_ 2.3 Organ de Assurer une bonne coordination des activit6s - Cr6ation du Comit6 Intenninist6riel de suivi des programmes 6conorniques en Fait Coordination d'ajustemnent du secteur des transports tant qu'organe de d6cision du PST (CIS) Fait - Comrit Technique de suivi des Programmes Economiques en tant quorgane de pr6paration des d6cisions du PST (CTS) - Poursuite de la concertation technique avec les op6rateurs 6conomiques et les Continu bailleurs de fonds par les autorit6s comp6tentes de l'Etat - Cr6ation de Ia Cellule de Coordination du PST en tant Secr6tariat pour la pr6paration et le suivi de son avancenent. Fait 3 Ernretien Routier 3.1 Efficacite - Desengagement de l'Etat et anelioration de - Privatisation progressive de lentretien routier et promotion des PME Programne 1997-2000 en Operationnelle 1'efficacite de l'entreien routier anmexe a la Intrice - Mise en place dun systhne efficace de suivi, de contr6le des travaux et d'audit externe Ao&t 96 En couns - Promotion des techniques HIMO - Elaboration de programmes sp6cifiques - Allegernet des procedures de passation des - Cr6ation de la Conmission Ministerielle des March6s A faire dan le cadre du marchEs PST 21/02/96 3.2 MATGENIE - Disengagement de l'Etat - Dinamfage effectif des directions regionales 1DEcembre 1996 - Creation des filiales Septenbre 1997 - Signature de la convention de privatisation pour l'unite pilote Decembre 1997 33 LABOGENIE - Restructuation et misc en concuTence _____DEcembre 1996 54 _Cameroon - Transport Sector Project t ~4 10 | 3 Ł1 § j A:;tIi} *iS I L Sf {. Ej *II :11. F| 351 I f 1 ; DOMAINE STRATEh0. ACTIONS ETAT CALENDRIER IYACTIOhS . . - OBEC S . ___________________ . ILAVANCEMENT - ___..___ 4 Sou-Secteur Transports T reafetres _ _ _ _ _ _ _ _ _ _ _ _ _ _ 4.1 1xhdurie des Am6liorer refflicacit6 de r'industrie des - Hannonisation et sinplification de la fiscalite routiere Reflexdon en cours Juin 96 transports transports routiers - Ehniner les controles routies illegaux Suivi des contr8lea en 1996 cours de pr6paration - Diminuer les coots de transport - R6duction des tarifs douanieasur les vehicules de transport de marchandises Refleidon en cours - Professionnaliser le BGFT et revoir le r6le du CNCC dans cet organisme - Etablir les conditions d'6galite de concurence entre le rail et la route - Meutre en place le pesage routier - Prot6ger le patnimoine routier - Reviser le code de la route pour preciser les normes, gabarit, dimension et poids de vebicules et leurs 6lements Loi de protection du Avril 96 - R6vision du cadre institutionnel pesmettant au MINT de coordonner les actions patrimomne routier des diff6wo ntsmervenants A prendre en compte dans - Mettre en place un code de responsabilisation en matiere d'accidents de la le POE route, de destruction des 6quipements routien de la route - Renforcement de la securit6 routiere Loi de protection du Avril 96 patrinoine routier 4.2 Transport de - Am6liorer et faciliter le transit - R6habilitation du systEme infonmatique douanier Audit du systenme existant Transit Choix du nouveau systame en cours - Mettre en place un systeme de transit inter-Etat des pays de 1UDEAC (TIPAC) Convention UE signee ______________________________ ___________________________________________ I_ EtuEtudesoututsres enocos 4.3 Transport Urbain - Dsengagement de l'Etat des op6rations - Metre en place un cadre r6glernentaire et institutionnel incitatif i I'initiative Projet de cadre D6cembre 1996 priv6e r6glernentaire disponible - Lib6ralisation des activites . DOMAINE STRATEGI ... ACTIONS ETAVT CAJENDRIER LYACT1YONS O QBCTIPOB S : ::::I: AVA EE 5 Sous-Secteur Portuaire Pernmetre - Amdtioration de l'efficacite - Dragage d'entretien a 1'entreprises d'activite - Disengagement des activites non portuaires - Cession, gestion des equipements logistique de la peche au secteur privd Ddcembre 1996 Organisation - Mettre en place un organigramme pls - Reexaminer la delEgation a dormer aux diff6rents paves et adoption de Septembre 1996 operationnel et adapte aux mission de l'ONPC I'organigrammer !er senwstre 1996 - Amdliorer les circuits d'infonnation - Lanceent des etudes (resources humais s , gestion operationnelle et financiere) d mise en oeuvre des reconmmndations: Decembre 1996 (a) A cour terme Juin 1997 (b) Autres reconmmandations - Redactiver la structure formelle de conceftation au niveau des Directeurs P6riode du Investissements - Rentabilite fmianciere et economique - Priorites: (a) dragage de rehabilitation (chenal, darse, pieds de quai); (b) contrat restructuration/rehabilitation/rdnovation: (i) defenses d'accostage au port de programme - Preservation de 1'equilibre financier de Douala; (ii) rehabilitation des chaussees; (iii) restructuration du port de Douala l'ONPC et autres grosses reparations; (c) ouvrage d'accostage pour navires grumiers; (d) systeme d'infonnation portuaire; (e) modernisation du terminal a conteneurs; (f) - Non implication de l'Etat ouvrages de calibrage du chenal. - Rehabilitation et am6lioration de l'existant 1995/1996 Maintenance - Accroitre le niveau de la qualite des services - Mise en place d'un programme de maintenance - Mise en place et suivi d'un budget de maintenance actualis6 - Conventions demandant aux amodiataires d'assurer l'entretien de l'interieur des magasins 1995/1996N Charges - Connaissance de la repartition des charges - Metre en place une comptabilite analytique 1 d'exploitation - Reduction des charges Adaptation des charges des ports secondaires au niveau du trafic 1995/1996 N Gestion - Amnliorer les resultats Amelioration du controle a posteriori finandiere - Mensualisation du budget - Constitution des provisions pour charges a repartir - Renforcement de l'outil informatique (equipement, formation, schema N directeur) r_ Schedule)I S7 |,1!X~~~ ] i 58 Cameroon - Transport Sector Project _-I 3RA _t a~~ t 811 g 1I ' !_w}t _ _~~~ ROUTES RURALES QTE QTE QTE QTE NATURE DES PREV PREV PREV PREV s TRAVAUX (km) E CM/E (km) E CMIE (km) E CMIE (km) E CM 97 98 99 2000 ENTRETIEN PERIODIQUE Rechargementl 1 5 1 Rehabilitation 1 500 100% 2 000 100%n ENTRETEEN COURANT Cartonnage Manuel 100 100% Rep. Rap. 100% 1 100% | 100% | 100% ROUTES EN TERRE QTE QTE QTE QTE NATURE DES PREV PREV PREV PREV TRAVAUX (km) E CM/E (km) E CMIE (kln) E CM/E (kin) E CM 97 98 99 2000 ENTRETIEN PERIODIQUE _ Rechargement 362 100% 623 100% 136 100% 706 100% Rehabilitation 362 100% 342 100% 190 100% 184 100% Rep. comp avec apport 938 100% 731 100% 1058 100% 996 100% Dforestage 484 100% 231 100% 60 100% 560 100% ENTRETIEN COURANT Cartonnage Manuel 1 652 100% 1 775 100% 2 017 100% 1 609 100% N Rep. Rap. 2 300 100% 3 290 100% 4 109 100% 4 995 100% Rep./Comp. S.A. 595 50% 50% 482 50% 50% 755 50% 50% 425 50% 50% O Actions pontuelles 6 934 100% 6 934 100% 6 934 100% 6 934 100% ROUTES BITUMEES __ 97 98 99 2000 E R E R E R E R Cartonnage Manuel 100% 100% 100% 100% Entretien courant (chaussee) 100% 25% 75% 50% 50% 100% Entretien periodique (chaussee) 100% 100% 100% 100% Interventions d'urgence 100% 100% 100% 100% d'urgence Legende: E=Enterprises CMIE = Communaute villageoises/PME R = Regie 60 Cameroon - Transport Sector Project Schedule 2: Benefits Resulting from the Privatization of Transport Public Enterprises Impact of State Treasury of Restructuring Vs. Not Restructuring (Post Devaluation) US$ Million 1994 1995 Total 1996 1997 1998 Total Total 1994/95 1996/98 1994/98 FOR ALL TRANSPORT SECTOR PEs COMBINED With Restructuring (93.6) (78.0) (171.5) (22.0) (17.3) (10.4) (49.6) (221.2) Without Restructuring (79.9) (33.7) (113.7) (63.4) (25.9) (20.5) (109.8) (223.4) Net Impact on State Treasury (13.7) (44.3) (57.9) 41.4 8.6 10.1 60.1 3 Yr. Payback as a % of Initial Net Restructuring 103.8% Cost FOR EACH OF THE FOUR LARGEST PEs OF THE SECTOR CAMAIR WithRestmeturing(HighCase) (25.1) (38.1) (63.3) (3.5) (2.0) (2.0) (7.5) (70.8) Without Restructuring (20.5) (9.3) (29.8) (9.9) (10.7) (12.0) (32.6) (62.4) Net Impact on State Treasuwy (4.6) (28.8) (33.5) 6.4 8.7 10.0 25.1 3 Yr. Payback as a % of Initial Net Restructuring 75.0% Cost SOTUC WithRestructuring (High Case) (11.3) (19.4) (30.8) (3.1) (2.7) (2.6) (8.5) (39.2) Without Restructuring (2.6) (9.4) (12.0) (38.8) (2.7) (2.6) (44.1) (56.1) Net hnpacton State Treasury (8.7) (10.1) (18.8) 35.7 0.0 0 35.7 3 Yr. Payback as a % of Initial Net Restructuring 190.1% Cost REGIFERCAM WithRestructuring(HighCase) (33.3) (24.3) (57.6) (10.1) (7.7) 4.4) (22.1) (79.7) Without Restructuring (32.0) (20.5) (52.5) (11.8) (9.9) (6.9) (28.6) (81.1) NetlnIpacton State Treasury (1.3) (3.9) (5.1) 1.7 2.2 2.5 6.5 3 Yr. Payback as a % of Initial Net Restructuring 126.0%% Cost CAMSHP/SEIAR CAMSHP Net hnpact of Restructuring AlreadylnitiatedbyGovt. (21.3) 7.7 (13.6) (1.0) (0.8) 1.5 (0.2) (13.8) SIMAR (Note 1) NethnpactofS3lARRestructuring 0.0 (2.2) (2.2) (2.2) (2.1) (2.1) (6.4) (8.6) Note 1: SIMAR, a 27% real estate subsidiary of CAMSHIP, is insolvent; CAMSHIP is liable for its pro rata share of SIMAR debt. Schedule 3 61 Schedule 3: Action Plan and Timetable for the Transit Component of the UDEAC Transport Reform Program To be implemented from a date to be determined 1st quarter 2nd quarter 3rd quarter 4th quarter Meeting of the Regional Starting technical assistance Meeting of the Regional Committee Committee provided to the National Committees Choice of one or two pilot international .Agreement on international itineraries to implement the TIPAC itineraries system on the basis of the outcomes of .Assessment of National Analysis of proposals Choice of the type of logbook tasks carried out during the third quarter Committees and guarantee documents, .Distribution of Manual of Procedures for TIPAC, Analysis of proposals made by training and discussion specialized consultants and technical assistants Missions of specialized 1. Facilitation: TIPAC logbook consultants 2. Telecommunication . Adjustment of national 2.1 Definition of messages regulatory frameworks 2.2 Choice of technical alternative 2.3 Procedures 3. Preparation of the guarantee system. Professionals aspects. 4. Implementation of the guarantee system. Customs aspects 5. Technical agreement of vehicles 6. Harmonization of transport regulatory framework 7. Road user charge. 5th quarter 6th quarter 7th quarter 8th quarter Meeting of the Regional Meeting of the Regional Committee Committee Assessment for the Progressive extension to the . Assessment for the implementation implementation of the customs entire UDEAC of the customs duty guarantee system duty guarantee system .Analysis of the need for .Timetable for further steps complementary measures .Study of arrangements to be included in the UDEAC legal documents 62 Cameroon - Transport Sector Project Schedule 4: Action Plan to Overhaul the Customs System 1. Proposals Concerning Personnel. * Organization of a seminar for senior Customs staff, focusing on remotivation and exercise of leadership. Sensitization to professional ethics, preparation of disciplinary actions. Initiation to management methods and preparation of performance charts. Participation by external specialists (IMF, French Cooperation, IDA). * Campaign to ensure personnel are informed regarding behavior and its consequences in the disciplinary arena: general information memorandum distributed to each staff member and organization of meetings on the topic of discipline in all units, to be addressed by the office and unit chiefs. * Publication in the media of the first results of the discipline campaign, and distribution of an information memorandum to staff enumerating and detailing the cases considered. Disciplinary assessment of all staff, both permanent and contract personnel. * Training plan for contract staff and for those engaged in surveillance. 2. Proposals Concerning Organization. * tReactivation of supervisory structures; Inspectorate staff must participate in the actual supervision of the services and propose both technical improvements and disciplinary action for flagrant cases. * In the context of the new organization chart of the Customs Directorate, a senior supervisory officer responsible for "policing" the services should be assigned to the sector chiefs (equivalent to regional or provincial directors). The first position created should be that of Douala. A temporary alternative could be to assign members of the Inspectorate staff to detached duty in the sectors, on the twofold condition that the officers thus detached not be "unwanted rejects" and that they be provided with the necessary means (vehicles, gasoline, per diem). * Review of the draft new organization chart to consider: * the need for reviewing the organization of the port of Douala (3 or 2 offices?); * the actual workload of the services; * the limitation on higher-level positions. The reorganization project studied should not be viewed as a reduction of services to obtain a larger number of management positions but as a concentration of resources on the points of significance in terms of efficiency and budget performance, as regards both available staff (public service constraint) and means (limited budget of the Customs). * Revision of the structure of the Douala services to prevent formation of a bloc outweighing the Directorate. Restudy of the port and airport offices' workload as measured by computerized means. 3. Proposals Concerning Customs Computerization. In addition to the highly technical proposals presented in the specific report on Pagode by the technical assistant assigned to the Customs by French Cooperation, the following proposals should be adopted: Scheduk 4 63 Restoration of the terminals and essential links in the port and airport, particularly for manifests and inspection in the port. Production of daily statements of the services' activity and uncompleted operations. Indication of duty and tax rates on declarations (will now be easier with application of the UDEAC tariff, only four rates). Progressive introduction of the computer module for selection of declarations, technical study and choice of goods for streamlined inspection, establishment of a section for inspection guidance staffed by officers from the inspection service and a section to handle admission on documents. Progressive elimination of check-inspections and replacement by inspection structures (senior inspection officer) assigned to the sector chief. Creation of a task force made up of technicians and Customs officers to come up with proposals for preparing the services for the new system. Elimination of waiting time and study of future patterns. Progressive implementation of the new patterns in preparation for the introduction of the new computerized system. Preparation of the specifications for the new computerized Customs clearance system. Establishment of three or four control units based on the simple principle: 1 item unloaded = 1 manifest line = 1 declaration = 1 payment slip = 1 collection by means of computerized and manual checking of manifests, by production and checking upon inspection of declarations which have not yet been inspected or signed off, by verifying the signatures and payment slips and by confirmation from the Treasury that payment has actually been made (checking of slips against receipts). * Choice of inspection of goods on leaving warehouse or at the port gate; officers will no longer be assigned to warehouses, which would free up 30 officers for assignment elsewhere; control of outgoing goods could be based on declaration numbers and possibly computerized. 4. Proposals Concerning Equipment. * In the context of the new computer options and the cost of essential rehabilitation work, transfer of the services to more suitable premnises available in the immediate vicinity of the port should be studied. * Special multiyear Customs reequipment program, 3 to 5 years, premises and equipment. Specific effort by Finance Ministry and possibly donors for Douala as a priority, but also for the most strategic points (major border offices). * Selection of data-transfer equipment, with emphasis on mobility of data rather than mobility of staff. Establishment of a radio network, provision of fax equipment for the major starting and crossing points (particularly for transit traffic). 64 Cameroon - Transport Sector Project Reequipping of officers with weapons, truncheons, etc. Reequipment with vehicles and motorcycles adapted for off-road use, pooling of vehicles and surveillance of vehicle and cycle use to prevent private usage. S. Proposals for Maximizing Services Received Under the Contract with the Soci9te Generale de Surveillance (SGS). Effective fbllow-up of abnornal cases reported by SGS. Absolute obligation for inspectors to use at least the value indicated by SGS. Performance by SGS of an additional random check of 20-39% of dossiers under the value threshold to ascertain whether there has been excessive subdivision. Improvement of the monitoring of coffee and cocoa exports by more frequent checks, and elimination of the provisional declarations for wood. Cancellation of specific exemptions from SGS checks granted to certain exporters. Systematic weekly SGS-Customs coordination meetings, with official minutes to the Minister. Provision of a Pagode terminal for SGS use for supervision of operations (observation without intervention). Ensuring security of the taking over of goods by assignment to SGS of the cargo and Pagode manifests and the Customs clearance statements. In the extreme case, transfer to SGS of the taking over of goods if the Customs does not demonstrate its will in the matter within six months. 6 Miscellaneous Measures Establishment of an emergency procedure for goods in transit to Chad and the CAR, with the aim of reducing the hold-up time in the port of Douala from the present 30 days to 10 days. Single bond for warehousing and temporary admission operations. Reduction of releases to banks. Limitation or even elimination of the free point system, use of appropriate Customs systems. 1995/1996 1996/1997 1997/1998 1998/1999 1999/2000 Investment Total Total Total Own Borrow To be Total Own Borrow To be Total Own Boffow To be Total Own Borrow Tobe Total Own Borrow Tobe 1996- Exere. Res. sought Exere. Res. sought Exerc. Res. sought Exerc. Rcs. sought Exerc. Res. sought 2000 Studies 3721 3721 1777 752 305 720 1471 613 58 800 223 165 58 85 85 165 165 Portresrutunring 200 200 82 82 118 118 Berthrehabilitation 200 200 120 120 80 80 0 Dep-sea port 2000 2000 1000 280 720 1000 200 800 5 Containerterminal 751 751 335 30 305 208 150 58 208 150 58 Ca Port mader's office 220 220 70 70 150 150 Channel rehabilitation 100 100 50 50 50 50 Other 250 250 190 190 15 15 15 15 15 15 15 15 - 88898 4898 435 435 2515 830 1685 450 50 400 1448 50 398 1000 50 50 z4 Container terminal 798 798 400 400 398 398 to Timberstoragesrea 900 900 215 215 685 685 Besth reabilitation 1000 1000 220 220 780 780 Deep- pot 37000 0 Apr 2000 2000 1000 1000 1000 1000 Channel rehabilitation 40000 0 ° Other 200 200 50 50 50 50 50 50 50 50 5014 2714 500 500 125 125 639 125 514 811 125 686 639 125 514 Container taminal 1714 1714 514 514 686 686 514 514 Port master's office 2300 0 5 Otber 1000 1000 500 500 125 125 125 125 125 125 125 125 Equipmad 23795 21782 10300 359 9400 541 1115 200 915 3734 200 3534 4912 200 686 3734 200 3534 Conainer terminal 11780 9767 3534 3534 4712 686 3534 3534 Tug-boat 3000 3000 3000 3000 Dredge 6400 6400 6400 6400 Scrvice boat 500 500 500 500 Managmern 1115 1115 700 159 541 415 415 e information system Other 1000 1000 200 200 200 200 200 200 200 200 200 200 - Infiasbucure 24310 21630 S548 2798 2250 3500 5900 400 3000 2500 400 400 3080 400 2680 3702 462 3240 ! Chuael rehabilitation 6000 6000 3500 3500 2500 2500 A Driveways 7500 7500 4500 2250 2250 3000 3000 Berth Rehabilitation 5600 3920 1680 1680 2240 2240 > Warehouse rehab. 500 500 38 38 100 100 100 100 100 100 162 162 1 Equipmentrehab. 1415 1415 415 415 250 250 250 250 250 250 250 250 Building rehab. 295 295 95 95 50 50 50 50 50 50 50 50 Other 3000 2000 1000 1000 1000 1000 0 Other 1000 1000 200 200 200 200 200 200 200 200 200 200 Total 139738 57758 21760 5044 11955 4761 11326 2368 3058 5900 5646 1140 4506 10536 1060 5796 3680 8490 1202 4048 3240 Own res.: Own resources; Borrow.: Borrowing; Rehab.: Rehabilitation 66 Cameroon - Trasnsport Sector Projedt Schedule 6: Status of Implementation of the Transport Sector Technical Assistance Credit Activity Status of Implementation Support to Institutional Development Strengthening of the unit in charge of privatization in MINEFI Contract underway (foreign technical assistant) Strengthening of the unit in charge of privatization in MINEFI Terms of reference prepared (local consultants) Financial advisor for the privatization of CAMAIR Contract underway Financial advisor for the privatization of CAMSHIP and CAMTAINER Contract underway Financial advisor for the privatization of REGIFERCAM Contract underway Liquidator of SOTUC Contract underway Assistance to the monitoring committee for the liquidation of SOTUC Contract underway Financial and operational management of ONPC Contract awarded Restructuring of MATGENIE First phase completed. Second phase to be defined based on restructuring plan Restructuring of LABOGENIE First phase completed. Second phase to be defined based on restructuring plan Support to the coordination of road maintenance activities Completed Support to the organization and financing of rural road maintenance To be launched Support to the restructuring of CNCC To be launched Short-term assistance to the TICU To be launched Assistance to MITh Contact underway Support to implementation of TIPAC Selection of consultant underway Assistance to regional committees To be launched Assistance to national committees To be launched Institutional Development Studies Restructuring of MINTP Contract underway Organization of dredging Selection of consultant underway Creation of a Road Fund Completed Simplification and harmonization of the road tax system Completed Capability of local transport consultants Selection of consultant underway Operational and financial management audit of CAMAIR Completed Institutional study of urban transport Completed Plan of action for road safety Completed Restructuring of MINT Selection of consultant underway Reduction of Douala port costs To be launched Policy Support Support to urban transport privatization and liberalization Completed Regional logistic costs study Contract awarded Transport sector review Completed Revision of the Civil Aviation Code To be launched Legal adviser for the liberalization of maritime transport Completed Schedule 6 67 Activity Status of Implementation Project Preparation Support to the improvement of the customs computerized information To be launched system Relocation of the customs computerized information system To be launched Study of insurance system and organization of the TIPAC To be launched Establishment of a programming system for earth road maintenance Completed Mitigation plan for environmental issues in road mnaintenance Selection of consultant underway Engineering studies of a road maintenance priority program Selection of consultant underway Feasibility study of the program of rehabilitation of the railway track Contract awarded Feasibility study of the railway telecommunication program Selection of consultant underway Continuation of computerization of vehicle certification Selection of consultant underway Pilot operation for monitoring loads of trucks Selection of consultant underway Engineering study for the rehabilitation of ONPC's dredger Contract awarded Study for the relocation of the dry-yard Contract awarded Analysis of dredging materials Contract awarded Audit of transport public enterprises To be launched Establishment of project accounting Selection of consultant underway Project audits Selection of consultant underway Project accountant in the Transport Interministerial Coordination Unit Selection of consultant underway Monitoring of bridges' condition To be launched Creation of a road data base To be launched Detailed engineering studies of airport rehabilitation To be launched Establishment of a programmning system for paved road maintenance Completed Training and Seminars Road maintenance initiative Completed Supervision of road maintenance works To be launched Procurement for road maintenance To be launched Environmental issues in road maintenance To be launched Liberalization of urban transport Completed Transport Interministerial Coordination Unit On-going Young Professionals Program To be launched Civil Aviation Sector To be launched Maritime Sector To be launched Meteo Sector To be launched Seminar on MINT restructuring To be launched Implementation of TIPAC To be launched 68 Cameroon - Transport Sector Project Schedule 7: Detailed Program Costs Totals includingcmntingncies Foreig Local Duties Finacng (CFAF nillimn) 95/96 96/597 97/98 98/99 99/00 Currency Curreacy kTs:e IDA UE BMZ ADB CFD GOVT to be Paved Roads A. New Roads Bamends-Batibo 1795 4726 3982 2089 5464 607 BachuG-Akakgbe-Mamfe 1653 981 1728 906 2370 263 Eseka-Lolodarf 2813 1846 967 2532 281 Barnbui-Fundong 4395 2884 1511 4395 B. Spot pavemenlt Bamenda-Kakar-Nkambe 1095 718 376 1095 C. Rehab. and Penodic maintenance Financing to besought 7594 13585 11747 3608 5824 5824 15355 DA Financug 3076 1705 525 84 1940 1136 D. Emergency Programn Kekemn-Bandjoun 4932 2734 842 1356 3111 1821 Douala-Edea-Pourna 2255 1250 385 620 1422 833 Garoua-Maroua 4227 2344 721 1163 2666 1561 E. Structural Adjustment 320 141 179 320 F. Spot ImpraJvement 439 450 460 604 515 229 229 1119 G. Bridges 727 745 762 1001 854 380 380 185.4 H. Studies 75 499 494 665 204 199 89 68 206 706 I. Supervision and control 1181 360 34 907 899 2306 707 368 155 244 206 982 477 1317 J. TA to Pavcd roads Dept. 257 259 316 97 103 413 103 Sub-total 13583 5876 12615 13270 13200 35971 14485 11088 9383 1659 5013 11415 13722 20351 Earth Romds A. New Roads Bamenda-Kakar-Nkarnbc 3054 1778 1276 3054 Nditam-Ngambe-Tikar 464 270 194 418 46 K-akar-Sabangari-Sonkolong 10149 5902 4247 10149 Beltoua-Garoua Boulai 11072 11295 12994 9372 22366 13. Rehabilitation Nanga Eboko-Bouamn 2162 1046 614 502 1444 717 Garoua Boulai-Meiganga 1797 870 511 417 1201 596 Meiganga-Ngaoundere 1892 916 538 439 1264 628 Bamenda-BclifanS 681 329 193 158 455 226 Belffang-Wum 148 72 42 34 99 49 TKumba-Loum 796 385 226 185 532 264 Nyamboya-Banyo . 1524 738 433 354 1018 506 Ebolowa.Ambam 6279 6431 6084 4466 2161 10550 2161 iMbaridjok-Nanlga Eboko 1000 480 350 170 830 170 IDA Second tranche 3631 1757 1032 843 2426 1205 C. Periodic maintenance Boumnyebel-Bokito 167 97 70 167 Yaoundc-Kikot 244 142 102 244 Foumbarl-Jakini 167 97 70 167 Ayos-Bonis 2443 1422 1021 2443 Fownban-Nyamboya 222 129 93 222 Rtmnaining of the priority Iroads 2255 4237 3141 1845 1506 4338 2154 D. Disenclavement ofrural areas Mbalmayo-Eseka 244 142 102 244 Remainingof the network 1507 2271 2320 18U4 3177 1037 1037 5062 E. Bridges 281 651 738 754 1123 936 364 253 392 1778 F. Road maintenance 3020 4865 6193 13223 854 12670 1408 equipment G. Supervision and control 1169 1594 2232 1286 137 4502 1382 533 1222 3538 193 623 554 287 Sub-total 12474 27680 39411 18594 3211 59525 33144 8701 13999 43424 13533 11173 12114 7126 Ruml Roads A. Government Program Disenclavement ofrural area 1601 744 127 778 1458 1239 552 3249 Spot rehabilitation 739 620 316 519 984 837 373 2194 Ayos-Nguelermendouka 248 259 227 194 86 507 B. Program STABEX 4547 6986 6710 4823 11533 C. IDA Prograrn 1808 1851 1839 2688 1576 1288 4264 1288 D. CFD Program 3722 3801 2326 3918 1279 6244 1279 F. Training and sensitization l18 242 248 1987 82 40-4 121 486 121 G.Studies and supervision 761 920 451 92 94 1150 969 198 220 1327 572 198 Sub-total 7648 13358 6744 3746 1987 1562,4 13960 3898 4970 12860 6815 8837 Totals inudng couttingencies Foeign Local Duties Finmcg 95/96 96/97 97/98 98/99 99/00 Currency Cumrency & IDA UE BMZ ADB CFD FAC OECF UN AGCD BEN GOVT to be Taxes EF. sought AiUr -t t ARehabilitatimofDoualsairport 1810 4305 2772 5013 2363 1511 7376 444 1066 B. EquipnentMuDua-Salak 285 195 12 78 285 C. Equint Yde-Nsimalen 69 47 3 19 69 D Airsafety ndmeteo 292 288 246 300 421 479 225 451 674 Sub4otal 646 2097 4551 3072 5676 2858 1832 7376 451 444 2094 Ranl Transport A Lociomoves 5741 3929 250 1562 4180 1562 B.Teleonmmications 3192 6501 6658 11188 716 4448 11904 4448 C. Dibaba bridge 4328 2347 1245 736 3592 736 D. Rehbiihtation of Yaounde-Kaa 4850 8409 7194 3811 2254 11005 2254 E. RehabilitaionKaa-Belabo - 16464 16836 18067 9572 5661 5661 27639 Sub-total 13784 19238 23121 16836 42725 15594 14660 22908 3592 4180 14660 27639 Port Authority A Tug-boat 3643 2358 1285 3643 B. Dredger 7M 5029 2742 77 C. Seviceboat 585 400 26 159 159 426 D. Rehabihtation of 5565 3799 5077 2695 1592 1592 7M carrigewsys E. Chsmel rehabiltation 4002 4079 4177 4273 9168 2816 4546 11984 4546 F. Contsinertemuinal 5299 9050 3700 9789 5192 3068 12733 2247 3068 G. Berthrehabihtation 265 946 2077 2837 3322 1761 1041 1005 1041 4079 El Aprons 1237 1295 1374 728 430 430 2101 1. Tinber stor4e area 266 880 621 330 195 195 951 J.MIS 846 506 184 898 270 152 270 929 Sub-total 1111 16868 19106 20743 9268 37322 18472 11302 11415 12733 15389 11302 16258 Ministry of Public Works InstitutionslDevelopment 49 126 119 80 203 95 75 298 75 Equipinent 35 76 59 36 135 15 56 47 159 Studies 121 136 140 143 16 75 369 111 48 507 Trainingandseminars 122 124 127 130 309 95 101 403 101 Buildings 209 210 215 220 391 317 145 854 Sub-total 364 594 663 645 226 1113 891 488 797 1695 Ministry of Tranport Institutional Development 129 222 357 365 167 646 345 248 572 420 248 Studies 45 46 47 19 92 28 110 28 Trainin and sminars 149 220 207 140 228 345 143 573 143 Equipment 160 607 489 311 61 1114 71 443 444 1185 Buildings 246 247 316 323 519 421 192 1132 Sub-total 534 1226 1426 1253 415 2526 1274 1054 1699 420 2736 PPRT 1590 3769 4403 2450 7249 3078 1885 5222 3719 268 1119 1885 Customs and Transit A TIPAC 95 43 22 98 30 32 128 32 B. Customs Institutional Development 147 372 354 535 164 175 175 699 Trainil4 37 99 27 99 31 32 32 130 Equipment 493 505 683 44 272 272 727 Sub-total 279 1007 908 1415 269 511 128 511 1556 TOTAL 37951 86150 108435 87901 49050 209147 104924 55418 36197 62563 39604 24948 28957 1539 12733 451 4180 15833 69554 72929 70 Cameroon - Transport Sector Project USSn5million Tots including contingencies Foreign Local Dutis Financing 95/96 96/97 97/98 9S/99 99/00 Cwmsny CWency Tas IDA UE BMZ ADB CFD GOVT to be Paved Roads A New Roads Banends-Batibo 3520 8384 7808 4096 10714 1190 Bachuo-Akagbe-Mamfe 3241 1923 3388 1776 4648 516 Eseka-Lolodarf 5516 3620 1895 4964 552 Bsnbui-Fundong 8617 5655 2962 8617 B. Spot pavement Bamenda-Kakar-Nkambe 2146 1409 738 2146 C. Rehab. and per maintenance Fiancingtobesought 14890 26638 23033 7074 11420 11420 30107 IDA Financing 6031 3343 1029 1658 3804 2227 D. Emergency Propn Kekem-Bandjoun 9670 5361 1650 2659 6100 3571 Dousla-Edea-Pouma 4421 2451 754 1216 2788 1632 Garoua-Marous 8289 4595 1414 2279 5223 3061 E. Structural Adjustment 628 277 352 0 628 F. SpotImprovement 861 882 902 1184 1011 450 450 2195 G. Bndges 1426 1461 1493 1962 1674 745 745 3636 H. Studies 147 978 969 1304 401 389 174 132 404 1384 I Supervision and control 2315 706 67 1778 1763 4522 1386 722 304 479 404 1925 936 2583 J. TAtoPavedroadsDept 504 508 620 190 202 810 202 Sub-total 26634 11522 24734 26019 31764 70531 28401 21741 18398 3254 9830 22383 26905 39904 earth Reads A New Roads Bumends-Kskwr-Nkambe 5988 3486 2502 59S8 Nditarn-Ngmnbe-Tikar 910 530 380 819 91 Kakar-Ssbangri-Sonkolong 19900 11573 8327 19900 Bertoua-Groua Boulai 21709 22146 25479 18376 43855 B. Rehabilitation Nanga Eboko-Bouarn 4239 2051 1204 983 2832 1407 GarouaBoulai-Meirg 3524 1705 1001 818 2355 1170 Meignga-Ngoundere 3710 1795 1054 861 2479 1231 Bamenda-Belifang 1335 646 379 310 892 443 Belifing-Wum 290 140 82 67 194 96 Kuriba-Loum 1561 755 443 362 1043 518 Nymboya-Banyo 2988 1446 849 693 1997 992 Ebolowa-Ambam 12313 12610 11929 8757 4237 20686 4237 Mbandjok-NanpEboko 1960 941 686 333 1627 333 IDA Second tanche 7120 3445 2024 1652 4758 2363 C. Periodic mAintenance Boumnyebel-Bokito 327 190 137 327 Yaounde-Kikot 479 279 200 479 FouwIan-Jakiri 327 190 137 327 Ayos-Bonis 4791 2789 2002 4791 Fouban-Nyamnboya 436 254 182 436 Remainingoftheprioritylroadi 4421 8308 6159 3617 2953 8505 4224 9925 D. Disenclavement of rnal ma MbImayo-Eseka 479 279 200 479 Remaing of the network 2954 4454 4549 3694 6230 2033 2033 E. Bridges 551 1277 1446 1478 2202 1836 714 496 769 3487 F. Road maintenance 5921 9539 12143 25928 1675 24842 2760 equipment G. Supervision and control 2292 3126 4377 2521 267 8828 2710 1045 2396 6937 378 1222 107 562 Sub-total 24459 54274 77277 36460 6295 116714 649S8 17061 27450 85144 26536 21908 23753 13973 Rumi Roads A Governmet Progant DisenclavementafrWalxea 3139 1459 248 1525 2858 2430 1083 6371 Spotrelibilitation 1449 1216 620 1017 1929 1642 731 4302 Ayoo-Ngaclemendouki 486 508 446 380 169 995 B. PRormSTABEX 8917 13697 13157 9457 22614 C. IDA Prognm 3544 3630 3712 5270 3091 2526 8361 2526 D. CFDPrcn 7298 7452 4561 7682 2508 12243 2508 E Studies andsupervman 1492 1803 884 180 14 2256 1900 388 432 2603 1121 388 F Traing sensitization 232 474 485 161 792 238 953 238 Sub-totl 14997 26192 13223 7345 3896 30637 27372 7643 9745 25216 13363 17327 Totad iOuig cmingscic Fcrei Local Duties Financing 95/96 96/97 97/98 98U9 99/00 Cncy CuencY & Taxes IDA UE BMZ ADB CFD FAC OECF UN AGCD BENEF GOVT to be tou& Air b A Reaab. dD wsba airpc 3548 8442 5435 9827 4634 2962 14463 871 2091 B.EqUimD.EMrouM,Sala& 559 383 24 152 559 C. Eqwpnat Yda-Nsimala 134 92 6 37 134 D.Airsift mdmeteo 573 564 481 57 826 939 441 885 1322 Subtotal 1267 4112 8923 6023 11130 5604 3592 14463 885 871 4107 RIl Tranat AL Locraotve 11257 7704 491 3062 8195 3062 B. Tdelxm icatioc 6259 12748 13054 21937 1404 8721 23341 8721 C. Dibunhbe,biie t486 4602 2442 1443 7044 1443 D.Rebabilitgticrnof Yacmdc-Ka 9511 16488 14107 7472 4420 21578 4420 E.RdwabilitatjnKaBclabo 32282 33012 35425 18768 11100 11100 54193 Sub-total 27027 37722 45336 33012 83774 30577 28745 44919 7044 8195 28745 54193 Pwt Atrlty A Tug.oa 7143 4623 2521 7143 B.Drdw 15239 9862 5377 15239 C. Serviceboa 1146 784 50 312 312 835 D. Rabjlitationao 10911 7450 9956 5284 3121 3121 15239 E. C_el iahlithiia 7t46 7997 8190 8379 17977 5522 3913 8913 F. Catainertamial 10390 17745 7255 19194 10130 6016 24967 23499 6016 G. B rebabilitatim 520 1855 4074 5562 6514 3454 2042 4406 2042 7998 H Ap= 2424 2539 2693 1427 844 1971 S44 4120 I.Tiubediapam 521 1726 1218 647 332 332 1865 . MIS 1659 991 360 1760 530 299 530 1821 Subtotal 2178 33074 37463 40673 18173 73131 36220 22160 22382 24967 30174 22160 31878 Mbistrry efPub Ww Itnal Developnmet 95 246 233 156 399 186 146 584 146 Equip2mt 68 149 115 71 264 30 110 92 312 Studies 237 268 274 280 31 147 724 218 95 994 T umingadsan 239 244 250 256 605 186 198 791 198 Bildina 410 412 421 431 767 622 285 1674 Sub-total 714 1164 1300 1265 443 2183 1747 956 1562 3323 Mish"*fTr _npet Inzibtal Dvelvonmit 252 436 699 716 328 1267 677 496 1121 824 486 Studies 88 90 92 37 179 54 216 54 Trainingnd ninas 292 432 406 274 447 677 281 1124 281 Eqlipnent 313 1191 958 610 120 2185 140 S69 870 2323 Builinp 482 4S5 619 634 1018 825 377 2220 Sub-total 1047 2404 2796 2456 814 4953 2498 2067 3330 824 5364 PPRT 3118 7389 8633 4804 14214 6036 3696 10239 7293 525 2193 3696 Custom Nd Trant A TPAC 186 85 43 192 59 63 251 63 B. Cusois Instittica Develoiminmt 289 730 695 1048 322 343 343 1371 Trailnig 72 193 52 194 60 64 64 254 Equipnt 967 990 1340 86 533 533 1425 Sub-total 547 1891 1780 2774 527 1001 251 1001 3050 TOTAL 74414 167157 212619 172356 96177 410092 203969 108662 70974 120890 77655 48918 56778 3017 24967 885 8195 31045 136381 142999 72 Cameroon - Transport Sector Program Schedule 8: Outline Terms of Reference of Technical Assistance A. Establishment of a Planning Mechanism in MINTP 1. The objective is to assist MINTP in the use of the planning and programming mechanism established under the paved road maintenance programming study financed by Germany and the earth road maintenance programming study financed by IDA in 1995. The consultant will carry out short-term missions to adjust the mechanism on the basis of new data collected by MINTP, to assess users' capacity and define training requirements, to evaluate the outcome of the mechanism and the consistency between the road maintenance budget and the planning and programming strategy used to establish the mechanism. Four two-week missions of a transport economist will be necessary per year during three years. B. Improvement of Human Resource Management in MINTP and MINT 1. The consolidation and sustainability of the gains attained through the other reform measures will largely depend of complementary achievements in the area of personnel management. An improved personnel management system, that ensured appropriate hiring, promotions, discipline and retirements within a framework of appropriate training and resource usage, is required to ensure efficiency and effectiveness. The consultant will undertake the following tasks: (a) to assist the Director of General Administration (DGA) to computerize personnel records; (b) to assist the DGA in reconciling its computerized personnel records with the Treasury payroll data; (d) to support the design and implementation of a personnel management infornation system; (e) to review the organizational and administrative structures and procedures for personnel management at the DGA with a view to identifying the need and scope for, inter alia: (i) the decentralization of the personnel management function; and ii) the establishment of a management audit section in the Division of Personnel Management services. f) to support the design of a feasible implementation program for developing a managerial culture in the civil service. C. Execution of a Plan to Improve Road Safety 1. Revision of the Legal Framework. The objective of the technical assistance will be: (a) to inventory and update the legal documents; (b) to prepare the legal documents to implement the Highway Code; (c) to prepare a simplified Highway Code understandable by illiterate people. 2. Creation of a Data Bank. The objective of the technical assistance will be: (a) to collect and analyze existing data; (b) to revise the form filled by the police agents at the location of accidents; (c) to identify a first program of dangerous spots and recommend measures to improve road safety at these spots. 3. Information and Sensitization Program. The objective of the technical assistance will be: (a) to launch a media campaign to inform and sensitize road users on road safety issues; and (b) to define a teaching program for schools. 4. Training. A training program will be carried out aimed at: (a) MINT's agents responsible for monitoring the use of the road network (compliance with rain barriers, truck overload regulation, dangerous spots); (b) establishment of a training program for teachers on road safety; and (c) MINT's agents responsible for the collect and treatment of data. Schedule 8 73 D. Detailed Engineering Studies for Road Rehabilitation and Supervision of Civil Works Execution 5. The objective of the technical assistance is: (a) to carry out the detailed engineering studies for the second year of the road rehabilitation program to be financed under the project; (b) to prepare tender documents; (c) to assist MINTP in the procurement process; and (d) to assist MINTP in supervising works execution. Detailed terms of reference are available in the project files. E. Training and Sensitization Program to Involve Beneficiaries in Rural Roads Maintenance A. Sensitization This subcomponent is intended to promote the program. The objectives are as follows: (a) encourage people to participate, to stimulate competition; (b) create a positive attitude towards community participation on the part of Government leaders and techicians; (c) prepare the conmunity to take over maintenance; and (d) prepare the cormunity to plan priorities. The sensitization process is designed to encourage the rural commnunities involved to participate in managing the routine maintenance of their road system. This is accomplished as follows: (a) By conducting a local prornotional campaign centered on the opportunities available to rural communities to obtain outside financing and the criteria goveming eligibility for it. (b) An NGO that is well established in Cameroon and offers a wide range of activities to local participants (missions, projects, existing groups, communities...) will be selected for this promotional campaign. (c) Government experts from subdivisions of pilot zones will be included in the taget groups to demonstrate the uniqueness of the content of the stategy. - By setting up and organizng local road maintenance commitees (CLER) as an expression of community interest, so that they may receive technical and management training from the "operator-desiger" NGO, through its representatives. Local road maintenance committees will set up their own organization, including statutes, operating procedures, and so forth. They will advise the 'Vtrainer/sensitizer" NGO of the proposed roads for which they are requesting outside financing. Details on the target groups involved, information channels, primauy messages to convey, and an estimate of the cost for promotional activities are provided in the project files. R Traning B.1. General Description Training should involve the heads of the road subdivisions designated for the "rural roads" component and local participants responsible for road rehabilitation and int ae, in that order. The training component, including promotion, will be managed by a training unit, through a "specialized opeator-designer" NGO. Iniially, and for the first three (3) months, the work will involve preparation of teachig aids and organization of courses. This will lead into an initial program for training the prsm actually performing the construction and the comnniies responsible for mainteae, as part of the management cycle of each '"project." The information and training unit will comprise at least the following technical staff (a) one road ngineer; (b) two trainers in labor-intensive works; (c) four persons in charge of community promotion activities, one per pilot zone; (d) one person in charge of logistics; (e) one graphic designer and illustrator of promotional materials and manuals. The description of these positions is available in the project's files. 74 Cameroon - Transport Sector Program B.2. Activities and Schedule of lmplementation A detailed description of the 12 major information and training activities is provided in the project files. The timetable for the execution of the inmfonnation campaig and training program is prested in Schedule 10. C. Strengthening of the Merchant Shipping Department 1 Services required under this component will include: (a) seminar on the UDEAC Code of Merchant Shipping adopted by the UDEAC countries in 1994; (b) Training on the MARPOL convention and legal assistance to prepare its implementation; (c) training on environmental issues in the port and maritime sector. D. Preparation of an Action Plan to Develop the International Trucking Industry D.1. Vehicle Rehabilitation Study 3. Objectives. The study targets trucks owned by operators engaged in regional transport to land- locked countries. 5. Scope of Work. The scope of work is as follows: (a) to document the mechanical condition of the vehicles owned by the private operators engaged in regional transport; (b) to provide a general census of the vehicles in operational condition, discriminating by makes and model groups which could be earmarked for rehabilitation according to one of the following criteria: (i) cost of rehabilitation below 20% of CIF vehicle cost for a similar new vehicle, and (ii) number of similar specifications examined; (c) to estimate the need for components and spare-parts for rehabilitation of selected makes, models taking into account the TIPAC criteria for vehicle specifications; (d) to outline preliminary procurement specifications for the components and spare-parts selected; (e) to prepare cost estimnates for rehabilitation works discriminating between capital costs (spare-parts and components) and labor costs; (f) to select, for project purposes, a number of vehicles from the above census, which could meet Cameroon demand for regional transport, within the lowest rehabilitation cost. D.2. Workshop Capacity Study 4. The objectives of the workshop capacity facilitation program are: (a) to encourage cost-effective workshop capacity through encouragement of small entrepreneurs in automotive maintenance; (b) to provide the ground-rules for workshop capacity investments in coordination with the credit intermediation program; (c) to complement the vehicle rehabilitation and training sub-components of the trucking component of TIPAC by providing low-cost capacity for vehicle rehabilitation; and (d) to encourage human resources deployment in technical skills. 5. Scope of Consulting Seruces. The scope of work is as follows: Schedule 8 75 (a) to documents the coverage, cost and shortcomings of the automotive repairs and vehicle maintenance industry; (b) to analyze the impact and cost of (a) above in the trucking industry and in vehicle operating costs in general; (c) to assess the capacity for vehicle rehabilitation (as described in the vehicle rehabilitation terms of reference); of the present facilities and the advantages of encouraging small entrepreneurs; (d) to assess the human resource base engaged in the automotive repairs and maintenance industry; and to assess the need for training in mechanical skills, the schools and/or institutions supplying mechanical skill training; and in general the present environment, availability and quality of mechanical skill training. 6. The above analyses and assessments should lead to preparation of a set of proposals concerning the following specific areas: (a) human resource existing in the automotive repair and maintenance industry; (b) regulatory environment of the automotive distribution, spare-parts dealership, and automotive repair and maintenance industry; adequacy, shortcomings and proposals for improvement; (c) technical proposal to encourage participation of small enterprises in industry development and access to financing and training; (d) general workshop capacity facilitation, liberalization, and encouragement in the light of the findings of the financial intermediation and vehicle rehabilitation studies and in the light of the proposals for training contained in the terms of reference for preparation of the TIPAC initiative. G.3. Manpower Training Assistance 3. Identification of the type and scope of assistance needed will be necessary at the inception of the manpower training and assistance program. The identification should be part of the technical assistance for manpower training and should materialize in a short study of manpower and training needs as a first step to organizing the delivery of assistance. 4. The end product of the training assistance should be a private sector oriented program complete with manpower targets, types of training, institutions involved, types of curriculum and cost estimates aimed at encouraging private sector skills in trucking, mechanical workshop capacity and freight- forwarding. D.4. Terminal Facilities Study 3. Objectives. The purpose of the Freight Facility Study is to assist in the analysis of proposed investments and financial prospects of the transport industry in Cameroon, with particular reference to operations, revenues, costs, management, and administration of possible low cost freight facilities in Douala and Ngaoundere. To this end, the study shall provide: (a) forecasting of commodity movements, domestic and international; (b) operational, economic and financial analyses of possible freight facilities; (c) liaison with the workshop capacity study; and (d) determination of recovery mechanism for the proposed investments. 4. Scope of Consulting Services. The study should have the following scope: 76 Cameroon - Transport Sector Program (a) assess current transport services, for domestic and regional transport investigating the possibilities for consolidation and unitization of cargoes, for operating regional door-to- door freight-forwarding services and, for developing transit storage services (containers); (b) determine the needs for simple low-cost freight centers providing services to the trucking, shipping and transport industries, identifying the necessary investments and complementary measures required for its economic and financial justification. (c) conduct economic and financial analyses to determine the appropriate scale of the freight consolidation centers; (d) draw the technical plans for establishment of the freight consolidation centers up to the preliminary engineering stage, and prepare the terms of reference, estimates and technical specifications for the final engineering; (e) formulate an organization plan for the management of the facilities and elaborate terms of reference for a subsequent management contract as required; 5. The Consultants' recommendations shall include but not be limited to the following aspects: (a) cargo handling methods; (b) transfer facilities required at Douala and at inland locations, including container facilities, inland clearance depots, etc.; (c) workshop facility requirements (if any); the consultants will liaise with the mechanical engineer carrying out the workshop capacity study. 6. A financing plan and a work program will be prepared. The financial cost estimate for all the works pertaining to the solution recommended will be broken down to show local and foreign exchange cost components. Schedule 9 77 Schedule 9: Training A. Support to Small and Medium Enterprises (SMEs) Available Experience 1. A training program of SMEs was carried out under the Road Maintenance Program financed by the European Union. This program consisted of: (a) Enterprise management and determination of prices during the period where bids were prepared: The training was provided by a consulting firm. (b) Execution of civil works: The training was provided by the consulting firm supervising the execution of the works. 2. The use of foreign expatriates made the cost of training very expensive and unsustainable on a long period. Therefore, a different approach is proposed: (a) A local training firm would be appointed to prepare a training program based on short units (for example half an hour per theme). (b) The program would be prepared in consultation with the SMEs to determine the training needs. It would be extended on the basis of new requirements identified by SMEs. (c) Training would be open to all SMEs and not only SMEs which have been selected to execute works. SMEs would have to contribute to the cost of training. (d) Training would be carried out at a decentralized level. Regional NGOs would be appointed to provide training to SMEs. (e) The local training firm would coordinate training activities carried out by NGOs. The training firm would receive assistance from local consultants highway engineers. (f) A Steering committee would be created to monitor the implementation of the training program. The committee would consist in representatives of the private sector (Syndicate of civil engineers, private banks among others) and the public sector (Ministry in charge of SMEs, Ministry of Public Works). The committee would be supported by short-term experts (training specialist, highway engineer). B. Restructuring of Customs The project would include training of customs' agents both in technical computer-related skills and in the new customs administration procedures being introduced in conjunction with the new computer system. The training would focus on on-the-job training to improve capacity of customs' agents in overall customs administration and operations, as well as enable customs' agents to participate in and assume progressive responsibility in computer administration and operations, software maintenance and enhancements, and communication management. The information technology training would include: (a) project management, system analysis; 78 Cameroon - Transport Sector Project (b) hardware and system software operations, remote diagnostics, file back-up, network configuration and management; (c) application software modalities and operations, programming logic and structure, maintenance, and enhancement techniques; (d) database management; and (e) computer-based auditing techniques. The following table describes the type of training on information technology to be provided and the employees targeted. Type of training Target Duration Users training on customs Managers, supervisors and 3 weeks per type of application computerized applications terminal operators Technical training on customs System administrators, data 3 weeks per type of application computerized applications base administrators, system analysts, programmers, facility operations staff, business systems trainers, infornation center specialists Executive computer awareness Freight forwarders, port 2 days managers Office automation Managers, analysts and I week per type of application (spreadsheet, word processing, clerical staff text retrieval) Project management (including Senior staff 3 weeks team leadership) System analysis System analysts 6 weeks Programming (3rd and 4th Programmers 6 weeks per type of language generation language) Computer operations Computer operators 3 weeks Technical support (hardware, System programmers and 3 months communications, operating database administars, systems) hardware engineers Schedule 10 79 Schedule 10: Project Implementation Schedule a .................. ..... .. ..................... ....... ............ .. a e'a~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~' - I 0EL C4 0 . a .I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ a a E aama IL~~3 IP I6 z~~IIiiI a C 0. Ij Ia IA I I ' 80 Cameroon - Transport Sector Proiect X.__- 4i .N .. ... .... ... .. 0 E - ;<~~~~~~~~~~~~~~~~~~1 U.a a~~~~~~~~~~~~~~~~~~~~~Acnc I Am m ~ ~ ~ ~ ~ ~ ~ ~ a~~~~~~~~~~InI;I nI -t Republic of Cameroon Transport Sector Program Implementation Schedule of the Road Maintenance Component 1996 I1996 1199719899 1D Task Name 0 03 04101 020Q3 04 01 Q2 03 Q4 Q1 02 03 0T 4 Qi Q2 03 I PROGRAM FY96I 2 Selection of consultants 3 Preparation of coi and tors 4 Launching of bkids17 5 SubmIssion of bids I Bid opening and award of contract 7SIgninig of contrac 9 Detailed enginering study 3survey on roads cornditin 10 Preparation of bidding documients I1 Tender of works 12 Launching of bids13 13 Submission of bids 14 Bid opening and award of contract 15 signing of contract 16 Earth roads 17 Execution of warks is Supervision 19 Paved roads 20 Executlon of wvork 21 SupervIson3 22 Task Summary Rolled Up Progress Project: RBI PorsRoldUTakSm ryprogress Date: 4/13138Pors ole pTs umr Milestonie Rolled Up Milestone ( Republic of Cameroon Transport Sector Project Impementation of the Rural Transport Infrastructure Component l 1996 1 1997 1 1998 1999 20 ID Ta*Nne Q40 Q1 I Q2I Q3IIQ4 QI Q2 03I Q41 Q1I Q2 Q3I Q4.1 i QI Q3rQ4I QI 00Q2 I RURAL ROAD PROGRAM 2 Selection of sponwr yE 3 Preparation of loi and tors 4 Launching of bids 714 5 Submission of bids 6 Bid opening and award of contract 7 Signing of contract 3 Training and Sensitization 9 Execution of training and sensitrzatio 10 Tender of works 11 Preparation of bidding documents 12 Launching of bids 13 Bid opening and award of contract 14 Signing of contract 16 Works 16 Execution of works 17 Supervision 13 Training and Sensitization _ 19 Execution of training and sensitization Task Roled Up Task Project: Rural RoadComponent Progress Rolled Up Milestone <2> Date: 4/13196 Milestone Rolled Up Progress Summary Republic of Cameroon Transport Sector Project Implementation of the Rural Transport Infrastructure Component 1996 1997 1998 1999 20 ID TaskNarne Q4 Q1 Q2 Q3 Q4 Q1 02 Q3 Q4 Q1 Q2 Q3 Q4 Ql Q2 Q3 Q4 01 Q2 20 Tender of works 21 Preparation of bidding documents 22 Launching of bids 23 Bid opening and award of contract 24 Signing of contract 26 Works 26 Execution of works 27 Supervision Task _ _ Rolled Up Task Project: Rural RoadComponent Progress Rolled Up Milestone co Date: 4/11396 Milestone Rolled Up Progress Summary 84 Cameroon - Transport Sector Project Schedule 11: Program Performance Indicators Transport Sector Reform Program: Indicators in accordance with the targets m the matrix of action attached to the letter of sector policy. Investment Program Overall Program: Rate of execution. Road Maintenance Financed by IDA Paved roads Earth roads rehabilitation rehabilitation FY97 300 km 615 km The FY98 and FY99 program for rehabilitation and periodic maintenance will be determined on the basis of the road maintenance programming studies underway. Port: Channel of the port of Douala rehabilitated and maintained at -7.5m. Management performance targets as agreed before Board presentation. Project Implementation Road Maintenance: Average overrun on cost of road maintenance contracts and on delays in contract execution. Rural Roads:-Degree of satisfaction of beneficiaries. Level of involvement of beneficiaries in rural road maintenance. Sector Monitoring Indicators (The reference indicators for FY95 and before will be provided in the Project Implementation Plan) Road Maintenance Kilometers of roads maintained or rehabilitated. Average cost of road maintenance by contract. Road maintenance budget execution. Funds allocated to the Road Maintenance Fund, deposited on the special account and disbursed. Traffic on roads maintained or rehabilitated under the project. Number of road maintenance contracts signed with local small and medium enterprises and number of men- days generated by these contracts.Distribution between foreign and local contractors of resources allocated to road maintenance. Number of employees in MINTP. Port Rail Volume of traffic. Characteristics of ships calling at Volume of traffic. Douala. Cargo handling perfornance. Waiting time Equipment availability and productivity. at buoy. Berth occupancy rates/Financial Financial ratios. ratios.Tariffs/Productivity of employees. Productivity of employees. Airports Civil Aviation Volume of traffic/Financial ratios/Tariffs. Volume of traffic/Share of traffic between CAMAIR and local private operators. Financial ratios/Tariffs/Productivity of employees. Schedule 12 85 Schedule 12: IDA Supervision Plan Timing Main Activities Skills Required Staff Weeks 12/96 Project launch workshop: Project management 3 Review of all key procedures of project executing agencies, Financial analyst 2 procurement, disbursement, statement of operating expenses, Highway engineer 2 compliance with credit covenants, monitoring of environmental Sociologist I impacts and systematic client consultation 4/97 Major Supervision: Project management 3 Review of implementation status: Financial analyst 2 (a) contractor's performance Highway engineer 2 (b) progress and outcome of studies; performance of consultants Sociologist I and counterparts; (c) execution of action plans; (d) monitoring of environmental impacts and systematic client consultation 9/97 Donor meeting Project management 2 (a) review overall progress of each component; identify issues Highway engineer 2 and agree on follow-up actions; (b) review and reach agreement on arrangements for training 4/98 Major Supervision: Project management 3 Review of implementation status: Financial analyst 2 (a) contractor's performance Highway engineer 2 (b) progress and outcome of studies; performance of consultants Sociologist I and counterparts; (c) execution of action plans; (d) monitoring of environmental impacts and systematic client consultation 9/98 Donor meeting Project management 2 (a) review overall progress of each component; identify issues Highway engineer 2 and agree on follow-up actions; (1,) review and reach agreemnent on arrangements for training 4/99 Major Supervision: Project management 3 4/00 Review of implementation status: Financial analyst 2 4/01 (a) contractor's performance Highway engineer 2 (b) progress and outcome of studies; performance of consultants Sociologist I and counterparts; Environmental specialist I (c) execution of action plans; (d) monitoring of environmental impacts and systematic client consultation 9/99 Donor meeting Project management 2 9/00 (a) review overall progress of each component; identify issues Highway engineer 2 9/01 and agree on follow-up actions; (b) review and reach agreement on arrangements for training 4/02 ICR mission Project management 3 Financial analyst I Highway engineer 2 Sociologist I Enviromnental specialist I 86 Cameroon - Transport Sector Project Schedule 13: Economic Evaluation of the Overall Road Maintenance Program 1. The costs and benefits of the road maintenance program are presented in table 1. The road maintenance strategy and the unit costs for maintnance are summarized in the subsequent paragraphs. Table 1: Cost-Benefits Flows of the Road Maintenance Program (CFAF billion) Paved Roads Savings on Vehicle Savings on Road Total Benefits Operating Costs Maintenance Costs Year 1 - -12.9 -12.9 Year 2 61.7 -2.8 58.9 Year 3 59.3 -6.1 53.2 Year 4 56.9 -1.9 55.0 Year 5 49.6 - 49.6 Year 6 51.8 - 51.8 Earth Roads Savings on Vehicle Savings on Road Total Benefits Operating Costs Maintenance Costs Year 1 - -13.8 -13.8 Year 2 23.4 -13.8 9.6 Year 3 30.7 -9.3 21.4 Year 4 30.3 -6.9 23.4 Year 5 29.7 - 29.7 Year 6 29.7 - 29.7 A. Paved Roads 2. Cost of operations have been estimated dependmg on the transversal profile of the roads, the type of carriageway and the geo-climatic area. The distribution of the network according to these criteria is available in Project files.. 3. Full Maintenance. Six maintenance operations will be carried out on paved roads: (a) cantonnage; (b) signaling; (c) repair of bridges, ditches and culverts; (d) cleaning of shoulders; (e) patching; and (f) periodic maintenance. The unit cost of maintenance operations are available in Project files. 4. Simplified Maintenance. Four maintenance operations will be carried out on paved roads: (a) cantonnage; (b) signaling; (c) repair of bridges, ditches and culverts; (d) and patching. The unit cost of maintenance operations are available in Project files. B Earth Roads 5. Full Maintenance. Eleven maintenance operations will be carried out on paved roads: (a) cantonnage (C); (b) light reshaping (RR); (c) grading with compacting without addition of material (RSA); (d) grading with compacting with addition of material (RAA); (e) regravelling; (f) rehabilitation; (g) cleaning of shoulders; (h) starting cantonnage; (i) signaling; (j) rain barriers; and (k) repair of bridges, ditches and culverts. Costs of operations have been estimated depending of the transversal profile of the roads and the geo-climatic conditions. All details on engineering design and cost of operations are in Project files. Schedule 13 87 6. Simplified Maintenance. Six maintenance operations will be carried out on earth roads and link roads: (a) cantonnage (C); (b) light reshaping (RR); (c) reshaping with compacting without addition of material (RSA); (d) spot regravelling; (e) rain barriers; and (f) repair of bridges, ditches and culverts. Road lengths according to transversal profile and geo-climatic area and cost of operations are available in Project files. C. Vehicle Operating Costs (CFA per vehicle-Idlometer) Road surface Type of vehide Road condition Good Fair Poor Very Poor Paved Privatecar 81 87 97 Taxi 84 94 117 Pick-up 185 206 256 2-axle truck 349 395 446 3 -axle truck 469 550 639 Minibus 304 339 421 Earth Private car 100 133 165 169 Taxi 109 155 201 203 Pick-up 242 308 374 385 2-axle truck 424 604 734 756 3-axle truck 632 786 940 966 Minibus 393 469 544 562 88 Cameroon - Transport Sector Project Schedule 14: Economic Evaluation of the First-Year Road Maintenance Program 1. The economic evaluation was carried out using the H1DM Model set up by the World Bank. For each year of the economic analysis period, the model calculates the road deterioration due to the traffic and the maintenance strategy applied to the road, the cost of the maintenance, and the vehicle operating costs based on the new road condition. The model compares the total costs, including rehabilitation costs, maintenance costs and vehicle operating costs, in the with- and without-project scenarios. Table 1 presents the maintenance strategy in the with-project scenario. Table 2 presents key parameters of the economic analysis and provides the Economic Rate of Retum and the Net Present Value for each road in the program. Table 3 presents the cost-benefits flows. Table 4 presents the results of the sensitivity studies. Table 1: Road maintenance Strategy in the With-Project Scenario Earth Roads Paved Roads Road Rehabilitation Regravelling Reshaping without Reshaping Rehabi- Periodic addition of material with litation Maintenance addition of material Nanga Eboko-Bouam 1996 and 2006 every 3 years once a year once a year Garoua Boulai- 1996 and 2006 2000 twice a year Meiganga Meiganga- 1996 and 2006 2000 twice a year until 2000 once a year Ngaoundere and once a year after after 2000 Ebolowa-Gabon 1996 and 2006 every 4 years twice a year Bertoua-Batoun 1996 and 2006 every 3 years twice a year Batouri-Ngoura 2006 1996 and twice a year 1996 and 2006 every 4 years Bamenda-Belifang 2006 every 8 years once a year Belifang-Wum 1996 and 2006 partial every once a year 4 years Kunba-Loumn 2000 twice a year until 2000 once a year and once a year after after 2000 Garoua-Maroua 1996 every 10 years Douala-Edea-Pouma 1996 every 6 years Kekem-Bandjoun 1996 everv 7 years Table 2: Key Parameters of the Economic Analysis Road Length Traffic Percent Average Total Economic Net (kIn) (AADT) Heavy Traffic Rehabilitation Rehabilitation Rate of Present Cost Cost Retum Value Nanga Eboko-Bouain 145 139 60.0 10.3 1.5 143% 8.8 GarouaBoulai-Meiganga 115 68 39.7 10.8 1.2 29% 0.9 Meiganga-Ngaoundere 152 130 36.1 8.6 1.3 79% 4.6 Ebolowa-Gabon 108 144 18.0 10.3 1.1 37% 1.2 Bertoua-Batouri 90 220 62.7 11.7 1.1 311% 14.3 Batouri-Ngoura 21 47 57.4 5.0 0.1 104% 0.4 Bamenda-Belifang 49 229 4.8 9.7 0.5 14% 0.0 Belifang-Wum 17 149 2.0 6.0 0.1 18% 0.0 Kunba-Loum 47 288 24.3 11.7 0.5 23% 0.3 Garoua-Maroua 150 599 16.0 20.0 3.0 22% 3.1 Douala-Edea-Pouma 80 2975 21.5 20.0 1.6 90% 14.6 Kekem-Bandjoun 70 1650 13.0 50.0 3.5 62% 4.3 AADT: Average Annual Daily Traffic The average rehabilitation cost is expressed in CFAF million per km. The total rehabilitation cost is expressed in CFAF billion. The net present value is expressed in CFAF billion discounted at 12 percent. Schedule 14 89 Table 3: Annual Costs-Benefits Flows (CFAF million) Earth Roads Nanga Garoua Meiganga Ebolowa Bertoua Batouri Bamenda Belifang Kumba Total Eboko Boulai Ngaoundem Front. Batouri Ngoura Belifang Wum Loum Earth Bouam Meiganga Gabon Roads 1996 -1,493 -1,242 -1,307 -1,112 -1,053 (0,105) (0,475) -1,102 (0,550) -7,439 1997 2,418 0,471 1,255 0,537 3,361 0,118 0,011 0,031 0,149 8,351 1998 1,874 0,415 0,961 0,520 3,093 0,117 0,032 0,023 0,124 7,159 1999 0,879 0,352 0,709 0,311 2,559 0,114 0,115 0,025 0,133 5,197 2000 2,779 (0,315) (0,174) (0,319) 3,326 (0,037) 0,117 0,024 (0,140) 5,261 2001 2,050 0,836 2,161 1,069 2,594 0,154 0,118 0,019 0,449 9,450 2002 0,984 0,731 1,477 0,689 1,979 0,132 0,120 0,019 0,286 6,417 2003 2,930 0,543 1,367 0,423 3,498 0,108 0,122 0,019 0,173 9,183 2004 2,128 0,385 1,359 (0,299) 2,749 0,099 (0,163) 0,019 0,132 6,409 2005 1,088 0,306 1,381 1,120 2,128 0,100 0,576 0,019 0,126 6,844 |ERR 143% 29% 79% 37% 311% 104% 14% 18% 23% 100%| Paved Roads Garoua Douala Kekem Total Total Total Total Maroua Edea Bandjoun Paved Paved Earth Program Pouma Roads Roads Roads 1996 -3,000 -1,600 -3,500 -8,100 1996 -8,100 -7,439 -15,539 1997 0,282 0,939 2,348 3,569 1997 3,569 8,351 11,920 1998 0,354 1,390 2,709 4,453 1998 4,453 7,159 11,612 1999 0,456 1,977 2,580 5,013 1999 5,013 5,197 10,210 2000 0,551 2,440 1,993 4,984 2000 4,984 5,261 10,245 2001 0,645 2,678 1,321 4,644 2001 4,644 9,450 14,094 2002 0,748 1,253 0,543 2,544 2002 2,544 6,417 8,961 2003 0,870 4,564 (0,994) 4,440 2003 4,440 9,183 13,623 2004 1,012 4,790 (0,341) 5,461 2004 5,461 6,409 11,870 2005 1,170 4,920 (0,084) 6,006 2005 6,006 6,844 12,850 2006 (0,759) 4,814 (0,087) 3,968 2006 3,968 3,968 2007 2,229 4,106 (0,090) 6,245 2007 6,245 6,245 2008 2,529 0,176 (0,093) 2,612 2008 2,612 2,612 2009 2,762 2,400 (0,096) 5,066 2009 5,066 5,066 2010 2,584 0,428 -1,159 1,853 2010 1,853 1,853 2011 2,030 (0,349) 0,852 2,533 2011 2,533 2,533 2012 1,398 (0,360) 0,087 1,125 2012 1,125 1,125 2013 0,658 (0,371) (0,109) 0,178 2013 0,178 0,178 2014 0,087 -1,832 (0,112) -1,857 2014 -1,857 -1,857 ERR 22% 90% 62% 52% ERR 52% 100% 74% Table 4: Sensitivity Studies Basic Investment Benefits Investment +20% Investment +30% Investment +40% Scenario +20% -20% Benefits -20% Benefits -30% Benefits -40% NangaEboko-Bouam 143 115 110 88 66 47 Garoua Boulai-Meiganga 29 19 18 9 1 <0 Meiganga-Ngaoundere 79 62 59 45 31 18 Ebolowa-Gabon 37 26 23 13 0 <0 Bertoua-Batouri 311 255 244 199 156 119 Batouri-Ngoura 104 78 73 52 31 11 Bamenda-Belifang 14 7 5 2 <0 <0 Belifang-Wum 18 7 3 <0 <0 <0 Kumba-Loum 23 14 12 5 <0 <0 Total Earth Roads 100 71 67 52 36 22 Garoua-Maroua 22 19 18 15 12 9 Douala-Edea-Pounia 90 78 76 56 56 46 Kekem-Bandjoun 62 47 45 18 18 <0 Total Paved Roads 52 44 42 27 27 20 Total Program 74 54 52 30 30 20 90 Cameroon - Transport Sector Project Schedule 15: Economic Analysis of the Rural Transport Infrastructure Program 1. Three benefits were quantified in the economic analysis: (a) value added in new agricultural production; (b) reduction in product losses during transport; and (c) savings in transport costs for both normal and induced traffic other than resulting from (a) and (b). Several benefits were not quantified, such as enhanced food security and enhanced ease of access to health services, extension and teaching. 2. The first benefit is the most important in quantitative terms, as it represents about three fourths of the benefits that the rural infrastructure program is expected to generate. Restricted access to areas of agricultural production to inadequate infrastructure has three consequences: (a) during all seasons of the year, but especially during the rainy season, farmers cannot conveniently access to their fields and are unable to fully harvest their crops which are left to perish; (b) in areas where transportation has to be head loaded, the quantities that can be taken out of the fields are limnited, which hamper on any desire to expand production; and (c) the quality of the produce which reaches the markets is lower because produce was not harvested in time or because of deficient transportation. The study assumed that the country's food production would increase by 1.6 percent per annum without the program and 3.1 percent per annum with the program. The percentage of value added per type of agricultural product and per type of road condition is given in table 1. Table 1: Value Added on Agricultural Products (%) Road impassable Road impassable Road impassable during Road passable at any season during the rain season part of the rain season at any season Food crops 75 60 50 25 Cotton 60 40 20 0 Cacao 50 25 0 0 coffee 50 25 0 0 3. Induced traffic benefits account for an additional 15 percent of total program benefits. Induced traffic is generated by increased non-farm earnings. As the mobility of small holder farming households and small scale businesses increases through the availability of cheaper transportation and higher level of transport services, added value will result from increased supply and demand of goods and services. Demand for non-farm services which are important to the rural poor and are especially provided by women include food processing, such as cooked snacks, processed roots, beverages, palm oil extraction, brewing, and manufactured produce, which have low investment requirements. Also, demand for wage labor for weeding, planting and harvesting, and fbr field leveling, ridging and preparation, should increase. So will demand for farm inputs. 4. Average Economic Rates of Return (ERRs) are provided in Table 1 per region and type of works for the priority rural transport infrastructure network. Table 1: Average ERRs (%) per Region and Type of Works Work Adamaoua Centre Est Extreme Littoral Nord Nord Ouest Sud Sud Ouest Total type Nord Ouead RA 43.2 58.7 30.1 45.6 42.0 50.0 72.8 72.5 25.9 25.3 48.9 TL 13.0 56.7 43.9 57.0 31.2 48.4 .51.7 41.1 RM 19.9 42.0 37.9 56.1 20.0 47.5 47.0 24.7 33.5 35.6 OU 24.0 24.0 Total 21.3 48.4 30.1 43.3 53.9 24.0 52.3 56.0 24.9 34.5 39.9 RA: Light Reshaping; RL: Reconstruction; RM: Heavy Reshaping and Compacting; OU: Reopening Schedule 15 91 Table 2: Sensitivity Analysis for a Sample of Roads Road nitial Invesmt Invedmnt - Tranmport Transport Agicual Agricultural ERR +10% 10% benefits benefits banfits +10% benefits -10% +10% -10% Doundera-Kobossi 47.4 44.8 50.2 48.5 46.3 49.1 45.6 Gazi-Inter NI-Gbatoua-Godole 26.6 24.8 28.9 28.2 25.0 27.1 26.2 Nkolfoulou-Elat 36.6 33.7 39.9 37.4 35.9 39.5 33.8 Sa'a-Int D48-Polo-Eyene-Int P13 45.6 42.6 49.1 46.2 45.0 48.2 42.9 Inter P7-Assok-Akomndong 23.5 21.7 25.7 24.6 22.5 24.6 22.4 Mbanga-Mombo 99.1 90.9 109.2 101.2 96.9 105.7 92.4 Ebonsi2(IntN9)-Oveng 124.1 112.5 138.6 125.3 123.0 135.2 113.1 LoumGare-Loum Chantier 124.5 113.5 137.9 127.3 121.6 134.1 114.8 Koutaba-Massiessier 25.4 23.3 27.3 25.7 25.2 27.5 23.2 BatchamChef-Barnkui 194.4 178.3 214.0 200.0 193.1 200.0 177.8 Kwakwa-Bai Banya 43.3 40.1 47.1 43.8 42.8 46.3 40.3 Inter 101-Inter 121 53.2 49.3 58.0 54.0 52.5 56.8 49.6 Djottin-LAssin 54.2 50.2 59.0 55.7 52.7 57.0 51.4 Guilekong-Foreke-Dschang 43.0 39.5 47.3 43.5 42.6 46.5 39.4 Bangangle-Sanya 46.5 42.8 50.7 46.9 46.0 50.0 42.9 Modeka N8-Mungo River 46.2 42.9 50.1 46.7 45.6 49.2 43.1 Sensitivity studies were carried out only for a sample of roads and not on the entire 10,000 km priority network which comprises about 800 roads. 92 Cameroon - Transport Sector Project Schedule 16: Economic Evaluation of the Rehabilitation of the Access Channel to the Port of Douala 1. Benefits expected from the rehabilitation of the channel are the following: (a) for cargo ships, an increase in the average freight transported to and from Cameroon resulting either in a reduced number of ships or in an higher occupancy ratio of ships, both resulting in a reduction of the average maritime transport cost per ton of freight; (b) for tramps, an increase in the size of the ships resulting in a reduction of the average maritime transport cost per tone of freight; (c) reduced waiting time bome by the ships when entering the channel or leaving the port; (d) reduced waiting time for berths. 2. Key parameters of the economic study are: (a) Traffic: Three scenarios were considered. Tons Annual Growth Rate Scenario 1995 1995-2000 2000-2005 2005-2020 Export Mini 1,780,931 1.5 0.9 0.9 Medium 1,789,779 2.5 1.5 1.5 Maxi 1,822,974 5.0 2.6 2.6 Inport Mini 1,876,980 0.1 0.1 0.1 Medium 1,878,145 0.9 1.0 1.3 Maxi 1,882,379 1.5 1.8 1.9 Total Mini 3,657,911 0.8 0.5 0.5 Medium 3,667,924 1.7 1.3 1.4 Maxi 3,705,353 3.3 2.2 2.3 (b) Ships characteristics. 18 types of ships were considered. Their characteristics vary depending on the channel depth. The evolution between characteristics is progressive depending on the type of ships. Detailed data are in the Project Files. (c) Transport costs: Costs were estimated at sea and at berth, depending of the size of the ships. Detailed data are in the Project Files. (d) Waiting time for high tide and for berth. Detailed data are in the Project Files. 3. Dredging costs include the rehabilitation cost and the annual maintenance cost. Quantities were estimated on the basis of a physical model to simulate the channel. Rehabilitation Maintenance Channel depth Quantities Cost Quantities Cost (m) (103 m3) CFAF million (103 in3) CFAF million 6.0 0 0 1,916 3,170 6.5 947 1,840 2,120 3,540 7.0 2,581 4,292 2,320 3,880 7.5 4,215 6,744 2,600 4,400 8.0 7,104 11,154 3,020 5,180 8.5 9,992 15,565 3,758 6,600 4. The net present value and the rate of return of the rehabilitation are provided in the following tables. Schedule 16 93 Net Present Value of the Rehabilitation of the Access Channel to the Port of Douala (Discounted at 12 percent - CFAF million) Cost of dredging Channel Depth (meters) Traffic CFAF/m3 6.5 7.0 7.5 8.0 8.5 Mini 2,000 4,497 6,853 22,631 19,767 9,623 2,500 3,900 5,710 20,653 16,537 4,113 3,000 3,309 4,573 18,681 13,313 -1,390 Medium 2,000 5,168 8,108 24,597 22,170 12,141 2,500 4,571 6,965 22,619 18,940 6,631 3,000 3,980 5,829 20,648 15,717 1,128 Maxi 2,000 5,836 9,416 27,916 26,110 16,404 2,500 5,239 8,273 25,939 22,880 10,894 3,000 4,648 7,137 23,967 19,657 5,391 Rate of Return of the Rehabilitation of the Access Channel to the Port of Douala (%) Cost of dredging Channel Depth (meters) Traffic CFAF/m3 6.5 7.0 7.5 8.0 8.5 Mini 2,000 49 37 61 38 21 2,500 44 33 56 33 16 3,000 39 28 52 29 11 Medium 2,000 52 39 62 39 23 2,500 47 35 58 35 18 3,000 42 31 53 31 13 Maxi 2,000 55 41 65 42 25 2,500 50 38 61 38 20 3,000 45 34 57 34 16 Net Present Value of the Rehabilitation of the Access Channel to the Port of Douala (Discounted at 12 percent - CFAF million) Benefits reduced by 50 percent Cost of dredging Channel Depth (meters) Traffic CFAF/m3 6:5 7.0 7.5 8.0 8.5 Mini 2,000 327 -564 4,678 -1,016 -12,406 2,500 -270 -1707 2,700 -4,246 -17,915 3,000 -861 -2,844 779 -7470 -23,419 Medium 2,000 663 64 5,661 186 -11,147 2,500 65 -1,079 3,683 -3,045 -16,656 3,000 -525 -2,216 1,712 -6,268 -22,160 Maxi 2,000 996 718 7,321 2,156 -9,015 2,500 399 -425 5,343 -1,074 -14,525 3,000 -191 -1,562 3,372 -4,298 -20,028 94 Cameroon - Transport Sector Project Rate of Return of the Rehabilitation of the Access Channel to the Port of Douala (%) Benefits reduced by 50 percent Cost of dredging Channel Depth (meters) Traffic CFAF/m3 6.5 7.0 7.5 8.0 8.5 Mini 2,000 15 10 22 11 <0 2,500 10 5 18 6 <0 3,000 3 <0 14 <0 <0 Medium 2,000 17 12 23 12 <0 2,500 13 8 19 8 <0 3,000 8 4 15 4 <0 Maxi 2,000 19 14 26 15 4 2,500 15 11 22 11 <0 3,000 11 7 18 7 <0 Flows of Benefits and Costs (CFAF million) Traffic mini - Cost of dredging: CFAF2,000/m3 -- Depth of Channel:-7.5m Year Investment Maintenance Benefits Total 1996 6,744 0 0 -6,744 1997 0 1,230 5,294 4,064 1998 0 1,230 5,378 4,148 1999 0 1,230 5,464 4,234 2000 0 1,230 5,548 4,318 2001 0 1,230 5,580 4,350 2002 0 1,230 5,612 4,382 2003 0 1,230 5,643 4,413 2004 0 1,230 5,674 4,444 2005 0 1,230 5,705 4,475 2006 0 1,230 5,900 4,670 2007 0 1,230 6,098 4,868 2008 0 1,230 6,297 5,067 2009 0 1,230 6,500 5,270 2010 0 1,230 6,107 5,477 2011 0 1,230 6,762 5,532 2012 0 1,230 6,817 5,587 2013 0 1,230 6,869 5,639 2014 0 1,230 6,923 5,693 2015 0 1,230 6,977 5,747 2016 0 1,230 7,043 5,813 2017 0 1,230 7,111 5,881 2018 0 1,230 7,177 5,947 2019 0 1,230 7,244 6,014 2020 0 1,230 7,309 6,079 2021 0 1,230 7,309 6,079 2022 0 1,230 7,309 6,079 2023 0 1,230 7,309 6,079 2024 0 1,230 7,309 6,079 2025 0 1,230 7,309 6,079 2026 0 1,230 7,309 6,079 Schedule 17 95 Schedule 17: Financial Evaluation of ONPC 1. The following tables assess ONPC's financial capacity to support its 1995/1996-2009/2010 investment plan. Three traffic scenarios were considered as in the economic study. Two rates of interests were considered corresponding to concessional and commercial borrowing. Five assumptions were made for the percentage of self financing (40 percent, 50 percent, 60 percent, 70 percent and 85 percent). Port tariffs are those of 1994 kept constant during the entire period of analysis. Table 1 presents the annual income statement during the investment period in the minimum traffic scenario assuming concessional borrowing and a 40-percent of self financing. Table 2 presents the annual net cash-flow assuming a 40 percent and 85 percent self financing, concessional and commercial borrowing, and a minimum and medium traffic. An additional sensitivity study was carried out assuming a 20 percent increase in the investment cost. 2. In addition to the investment plan provided in Schedule 10, investments executed after 2000 consist in the completion of berth rehabilitation started in FY99, construction of a new building for the harbor master CFAF2.3 billion) and construction of dikes to calibrate the channel (CFAF40 billion). The income statements are extrapolated from the FY94 data. They are conservative and do not assume any significant reduction of the charges. 3. The financial analysis was carried out with maintenance dredging costs for the optimum depth of - 7.5 meters estimated in the economic analysis. Maintenance dredging is expected to start in 1998. The cost of dredging the channel including along the quays is estimated at CFAF4,768 million, CFAF2,373 mnillion above the operating cost of the dredger Youpwe used by ONPC to maintain the channel at its current depth of -5.8m. The income statements do not take into account the impact of the reevaluation of the assets to take into account the January 1994 devaluation of the CFA franc, as well as the impact of the recent modification of the fiscal regime which suppress ONPC's tax exoneration and require ONPC to pay a 16.5 percent tax on its revenues. If necessary, tariffs will have to be adjusted to reflect these modifications. The debt service does not include current arrears estimated at CFAF5.3 billion. It is assumed that after compensation of cross-debts between ONPC and the State, the remaining balance will be affected to the capital. Table 1: Cameroon -- National Port Authority. Income Statements (Basic scenario: Minimum Traffic Scenario-40 percent Self Financing-3.5 percent Interest Rate; CFA million) Expenses 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Materials 1985 2001 2018 2034 2050 2067 2084 2101 2112 2122 2133 2143 2154 2165 2176 2188 2199 2211 Services-Transport 1494 2117 2117 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 Other expenditures 442 500 550 600 600 2973 2973 2973 2973 2973 2973 2973 2973 2973 2973 2973 2973 2973 Salaries 4077 4000 3900 3850 3800 3800 3800 3800 3800 3800 3800 3800 3800 3800 3800 3800 3800 3800 Others 0 0 0 424 423 542 543 544 544 545 545 546 546 547 547 548 549 549 Tax 21 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 30 50 Interest 1603 1470 1235 1543 1511 1701 1713 1655 1516 1349 1214 1116 1870 1769 1666 1565 1477 1394 Depreciation incl. 6245 5581 5488 6512 6890 7037 7369 7414 7288 6994 6701 6851 7002 6325 5504 5210 4816 3962 Provisions Revenues 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Duties on freight 4048 3909 3905 3914 3924 3934 3945 3955 3963 3971 3979 3988 3996 4005 4013 4022 4031 4040 Dutiesonships 9178 14753 14952 15170 15398 13649 13126 13258 13311 13424 13533 13587 13658 13775 13893 13959 14034 14094 Leasing 2645 2667 2690 2711 2732 2754 2777 2801 2814 2828 2842 2857 2871 2886 2901 2916 2931 2947 Othernon-portrevenues 1331 1346 1357 1367 1377 1387 1398 1409 1415 1421 1428 1435 1441 1448 1455 1462 1469 1477 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Operating income 1335 6956 7546 6149 6108 1555 714 886 1220 1811 2366 2388 1571 2485 3545 4024 4621 5618 Non-operating income -509 -500 -500 -500 -500 -500 -500 -500 -500 -500 -500 -500 -500 -500 -500 -500 -500 -500 Netincome 826 6456 7046 5649 5608 1055 214 386 720 1311 1866 1888 1071 1985 3045 3524 4121 5118 Cash generation 7071 12037 12534 12161 12498 8091 7583 7800 8008 8305 8567 8739 8072 8310 8549 8735 8938 9081 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Reimbursement of capital 3192 3696 2787 2643 2196 2213 2212 2044 6682 6458 6459 8263 8388 8388 8389 9689 9334 9335 Self-financing 5430 5430 5430 5430 1236 790 790 790 790 5965 5965 5965 790 790 790 790 Cumulated net cash-flow 4317 8404 13276 13724 17859 22825 23361 24418 25736 20246 13966 7923 7293 5549 4363 3319 N X Table 2: CAMEROON -- National Port Authority. Net Cash Flow (CFAF million) 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Traffic mini Percentage of self-financing: 400% Interest rate: 3.5% BASE CASE Net Income 826 6456 7046 5649 5608 1035 214 386 720 1311 1866 1888 1071 1985 3045 3524 4121 5118 Cash Generation 7071 12037 12334 12161 12498 8091 7383 7800 8008 8305 8567 8739 8072 8310 8549 8733 8938 9081 Net Cash Flow 4317 8404 13276 13724 17859 22825 23361 24418 25736 20246 13966 7923 7293 5549 4363 3319 Percentage of self-financing: 40%1 Interest rate: 9.0yo Net Incomec 826 6456 7046 4880 4565 -486 -1578 -1508 -1122 -462 196 337 -1700 -660 527 1133 1856 2979 Cash Generation 7071 12037 12534 11391 11455 6551 5791 5906 6165 6532 6896 7188 5302 5666 6031 6343 6672 6941 Not Cash Flow 4317 7635 11463 10370 12713 15785 14479 13762 13410 6370 -2682 .11369 -14517 -18653 -22104 -252S88 Percentage of self-financing: 85% Interest rate: 3.5% Net Incomec 826 6456 7046 6017 6106 1790 1069 1290 1592 2146 2647 2609 2393 3247 4247 4666 5203 6139 Cash Gencration 7071 12037 12534 12528 12996 8827 8438 8704 8879 9140 9348 9460 9395 9572 9751 9876 10019 10101 Net Cash Flow -10 119 1161 -1981 -5512 358 2465 5305 8805 -453 -9808 -18983 -16691 -15572 -13955 -12256 Percentage of self-financing: 85% Interest rate: 9.0% Net Income 826 6456 7046 5824 5845 1405 621 817 1118 1686 2204 2192 1700 2586 3617 4068 4636 5604 Cash Generation 7071 12037 12534 12336 12735 8442 7990 8230 8406 8679 8904 9043 8702 8911 9121 9278 9453 9567 Net Cash Flow -10 -74 708 -2820 -6799 -1402 232 2611 5667 -4008 -14055 -23894 -22229 -21708 -20657 -19494 Traffic median Percentage of seLf-fnancing: 40%1 Interest rate: 3.5% Net Income 826 6516 7194 6014 6150 1715 1034 1427 2010 2647 3348 3560 2944 4007 5261 5998 6832 8067 Cash Generation 7071 12097 12682 12526 13040 8752 8403 8840 9298 9641 10048 10411 9945 10332 10766 11208 11649 12030 Net Cash Flow 4.465 8917 14331 15439 20395 26401 28227 30619 33419 29601 25193 21172 22759 23489 25013 26918 Percentage of self-financing: 40%01 Interest rate: 9.0%1 Net Income 826 6516 7194 5244 5107 175 -758 -467 167 874 1677 2009 173 1362 2743 3606 4567 5927 Cash Generation 7071 12097 12682 11756 11997 7211 6611 6946 7455 7867 8378 8860 7175 7687 8247 8816 9383 9890 Net Cash Flow 4465 8147 12518 12086 15249 19361 19345 19964 21093 15724 8546 1880 949 -714 -1454 -1690 Percentage of self-financing: 85% Interest rate: 3.5% Net Incomfe 826 6516 7194 6381 6648 2451 1890 2330 2881 3482 4128 4281 4266 5269 6463 7139 7914 9088 CashGecneration 7071 12097 12682 12893 13538 9487 9259 9744 10169 10476 10829 11132 11268 11594 11967 12350 12730 13050 Net Cash Flow 138 631 2216 -266 -2976 3934 7331 11506 16488 8902 1420 -5736 -1225 2368 6696 11343 Percentage of self-financing: 85% Interest rate: 9.0%1 Nct Inxome 826 6516 7194 6189 6387 2066 1442 1857 2408 3021 3685 3863 3573 4608 5834 6541 7347 8553 Cash Generation 7071 12097 12682 12700 13277 9102 8811 9271 9695 10015 10386 10715 10575 10933 11338 11752 12164 12515 Net Cash Flow 138 439 1763 -1104 -4263 2174 5097 8812 13350 5347 -2828 -10644 -6764 -3769 -7 4105 Inveasnkent+F20% Percentage of self-financing: 400% Interest rate: 3.5% Not Inoome 826 6456 7046 5288 5077 373 -625 -534 -227 373 941 889 -172 834 2016 2512 3145 4269 Cash Generation 7071 12037 12534 12063 12365 7895 7355 7559 7774 8079 8354 8542 7720 7974 8229 8430 8649 8808 NetCash Flow 3231 6134 9787 8953 12612 17179 17137 17557 18130 10816 2531 -5501 -7068 -9733 -11825 -13759 Percentage of self-financing: 40%1 Interest rate: 9.0%1 Net Income 826 6456 7046 4364 3825 -1476 -2776 -2807 -2438 -1755 -1064 -972 -3497 -2339 -1006 -359 426 1702 Cash Generation 7071 12037 12534 11140 11113 6046 5204 5286 5562 5951 6350 6681 4395 4800 5207 5560 5930 6241 Nct Cash Flow 3231 5211 7612 4929 6438 8732 6478 4770 3339 -5836 -17446 -28651 -33240 -38776 -43586 -48087 NJ4 98 Cameroon - Transport Sector Program Schedule 18: Documents in the Project File 1. Project Preparation 1.1 Projet Sectoriel des Transports. Mission de preparation. April 5, 1992 1.2 Rapport de mission de pre-6valuation du Projet Sectoriel des Transports. February 24, 1993. 1.4 Projet sectoriel transport. Rapport d'evaluation. Documents annexes composante routiere. World Bank - June 1993. 1.5 Transport Sector Adjustment Credit. Aide-memoire. Appraisal Mission. World Bank. October-Novemer 1994. 1.6 Transport Sector Technical Assistance Project. Credit 2703-CM. Memorandum of the President (Report No. P-6559-CM, March 23, 1995) and Technical Annex (Report No. T-6559-CM, March 23, 1995). 1.7 Transport Sector Project. Aide-memoire. Reappraisal mission. World Bank. May-June 1995. 1.8 Transport Sector Technical Assistance Project. Project Implementation Manual. September 1995. 1.9 Programme d'entretien routier FED. Formation de PME et des cadres du MTP. Pingat Ing6nierie. September 1994. (Four volumes). 2. Road Maintenance 2.1 Etude de preparation du Projet Sectoriel des Transports. BCEOM. July 1992. (Three volumes). 2.2 Plan d'action pour le developpement des routes de collecte. BCEOM. July 1992. (Two volumes) 2.3 Ministere des Travaux Publics et des Transports - Assistance technique a la Direction de l'entretien routier. Sixieme Projet Routier. Rapport de fin de mission. - BCEOM - November 1992. 2.3 Projet sectoriel des transports Cameroun - Composante routiere, Mission de pre-6valuation 1993. Document recapitulant les analyses techniques relatives aux standards, aux specifications, aux fr6quences d' intervention pour les travaux et aux couts unitaires et globaux de ces travaux. Non official draft document of February 1993. A. Garaud. 2.4 Equipe Stabex/BCEOM - Programme de rehabilitation et d'entretien des routes de collecte et des itin6raires de d6senclavement. Document de travail pour la preparation pratique du programme CEE/Stabex pour l'execution de la phase experimentale. July 1993. 2.5 Parc National de Materiel de Genie Civil (MATGENIE). Etats financiers. Ann6es 1988, 1989, 1990, 1991, 1992, 1993 et 1994. 2.6 Laboratoire de Genie Civil (LABOGENIE). Etats financiers. Annees 1988, 1989, 1990, 1991, 1992, et 1993. 2.7 Etude de faisabilite pour la restructuration de MATGENIE. SEGMENT. March 1995. 2.8 Rapport d'actualisation des couts des travaux d'entretien routier. A. Garaud. March 1995. 3. Railways 3.1 Etude du statut institutionnel de la REGIFERCAM. Eurexcel Associates. October 1995. 3.2 Etude des perspectives de transport de voyageurs a la REGIFERCAM. CATRAM. December 1993. 3.3 IDC - Financial Restructuring of REGIFERCAM, 30 septembre 1993. 3.4 Etats financiers. Annees 1988, 1989, 1990, 1991, 1992, et 1993. REGIFERCAM. 3.5 Suivi du plan de redressement financier de la REGIFERCAM. Caisse Frangaise de D6veloppement. April 1992. 3.6 Assistance technique a la rehabilitation de la voie d'un troncon de la ligne TRANSCAM. DE- Consult. September 1994. 98 Schedule 18 99 3.7 Plan strategique d'entreprise. Avant-projet. AFCA-SIPCA. December 1993. 4. Civil Aviation and Airport 4.1 Aeroports de Paris - Contrat d'assistance pour la constitution et la mise en oeuvre d'une societe autonome de gestion des principaux aeroports du Cameroun. Rapport definitif. 4.2 Audit Cameroon Airlines, Assessment and Recommendations. Documentation de synthese et Annexes. MACH 2000. June 30, 1993. 5. Maritime Transport 5.1 Services maritimes dans les pays de l'Afrique de l'Ouest et du Centre. Table Ronde de Cotonou. CMEAOC and World Bank. September 1993. 5.2 Etude diagnostique et propositions de restructuration des entreprises para-publiques du secteur maritime. Port Autonome du Havre. March 1991 (Four Volumes). 5.3 IDC - Financial Restructuring of CAMSHIP - CAMTAINER - CNIC - August 27, 1993. 5.4 Rapport final du Comit6 de Suivi des recommandations de la Table Ronde CNCC/Chargeurs/Banque Mondiale tenue les 22 et 23 juin 1993. 6. Port 6.1 Douala Port Cargo Flow Study. Final Report. Netherlands Economic Institute (NEI). October 1992. 6.2 Plan d'actions pour le secteur portuaire. NEI. January 1994. 6.3 Etude de protection environnementale du port de Douala, du Chenal d'acces et des eaux c6tieres. Version provisoire. NEI. August 6, 1993. 6.4 Office National des Ports du Cameroun - Plan d'entreprise 1993/1988. 6.5 Amenagement du chenal interieur du port de Douala. Evaluation 6conomique et financiere. SOGELERG. Juin 1995. 6.6 Projet de contrat de performance Etat/ONPC 1994-1998. 6.7 Office national des Ports du Cameroun. Diagnostic. Caisse Fran,aise de Developpement. March 1995. 6.8 Port de Douala. Ouvrage de calibrage de la riviere Wouri. Rapport d'etude d'impact. SOGREAH. May 1995. 6.9 Systeme d'information portuaire. Sch6ma directeur. Africa Ing6nierie. 6.10 Etude des accds du port de Douala. Rapport d'ensemble. OCCR Inter G-LCHF-Port Autonome de Rouen. September 1987. 6.11 Douala Port Container Terminal Modernization Project. Review and Reassessment Report of Feasibility Study. Ocean Consultant-Nippon Koei-SOCEI-LABOGENIE. November 1990. 6.12 Etude diagnostique et propositions de restructuration des entreprises para-publiques du secteur maritime. Port Autonome du Havre. March 1991 (Four Volumes). 7. Transit Transport 7.1 Regional Policy Reform Program Transport Component - The Customs Union of Central African States (UDEAC) - Volume I (Executive Summary and Main Report) - Volume II. April 30, 1993. 99 MALI NIGER t 10k~~oe Thod SUEi \ * BUBR7NA CHAD The~ANp hmo benk p m re FASO T The Wold Bonk Gw,'l G\ IN / RERUBLIC K unYof dand n f fm A loe rk NIGERL4~~~~~ r4e,aa~Wwl .n o The WoddkBan NIGuol ThERIA don dn wl FYoI ° ° Go117HA .nd lb. bwandana daa CENTRALAFRICAN oo of The %ddBonkna, REPUBI "ny nonrd a eb GoII of AJv~~~~~~~~~EROON ~ ~ ~ ~ . b.Wn CHAD NA CONGO ZAIRE I. 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Loke Chad NIGER c Lake Cbond |SUDAN\ BUBKIyIAxl / ~ ~ ~~ 1v CHAD D Ths rep hts bean prepared FASO A CHAD by The Worldd BanW stof oefers or h coneece \-d.\ BEIlIN ~~~~~~~~~~~~~~~~~~~~int-rna or,e of 'Thei Wodd Bank Fotokol o X / NIGERIA Gro-pTbe denomintions used and the boundaries shoc.- 0 CENT~~~~~~~I AFRICAN no~~~~~~~~~. this reap do not a.ply, on he | 9 g / X CENTRAL AFRICAN prf of The World Bank rGop, GHANA REPUBLIC any o.d?-ent on the egot I Or- tAAEROO end- ionnameat ory terOy or ac y epoaSn Gu0ot M sunkboundories. p CHAD EQUATORLAL I GUINEA ON ZAIRE OTLANTtC OCEAN CONGO ZAIE G KIOMETrtS 0 70 40 60 E0 100 120 1i0 600 MILES 0 20 40 60 00 00 J doro iu i \ r~~~'M47ga \ CAMEROON . ooio 0 Bogo AROUA g0 PRIORITY ROAD NETWORK , - - Yaoo\ PAVED ROADS dGr er ! * ,.. FAtSi, PAVED ROADS: a SELECTED TOWNS -, \uu PRIORIPTY I G3 PROVINCE CAPITALS -'&ROUA PRIORITY 2 69 NATIONAL CAPITAL ! . PRIORITY 3 UNPAVED ROADS ||' Goibjiba l . / <,bii Dlemod'o.' - RAILROADS Tchoy0 R RIVERS / RrdERs P'. .~~* Foro NORD .--. PROVINCE BOUNDARIES O _ Foro|o INTERNATIONAL BOUNDARIES ! G- 0 - / \Tigneef Tign&e .~IGAOUNDERE "- I AiAMAOUA t 3 ERE-Aj r NORD- I' ' LI0ST[Fb N ambe Bn, < Baayo\0aIa Meigongo j NIGERIA ,. Wo7 ) / eidou[ou i "' Jd,hbeng.i B ENDA ' ./ymjk ' O9 '°JECT / Z| / .6 0Fyoreojob l- " I - - Garouc, CE T A yAyuk\ tkp SJiu ban. ' g \ Ndoknyo . CENTRAL o {' - DsehgngO | \'''v~~^ \ 9 - ( AFRICAN ! sI DNgutlf ,- -aBAFOUSSAM , CENTRE! , - / REPUBLIC Ct)IJ[ST up I~e oIaekg ongangf / / */ \1Mndereba 1/ NM'egsareba o Nngo0bo ;'* ,' . Kumbn + v , _ i tinB,B' Ebobo BERTOUA I Idenoow ) 6i\u > Limbe ' LITTORAL _MoaafIA \mona r \ , _ , 5 5 i4;~~~~~~~~~~~~~~~~bng NdelIb Imbul DOUALA Ed YAOUNDE ---cMbcng n - fia E\ AbokvInga Es. 1^ _ Mba>ayo . N i yN . EQUATORIAL 10{' 1 1 \~~~~~~~,e )in._' *-*. _-- - I I im LTTOKL ---AL 1m b \ 6O -boul8 . EQUATORIAEUA GA1,N CONGO _ i GUINEA Co IBRD 24029 UDEAC REGIONAL POLICY REFORM PROGRAM TRANSPORT FACILITATION COMPONENT Infrastructure Communication Links MO ROCHAD C / 9 w ~~N'Djameno / ' oOm g %R~~~~~~~~~IC NBLIC DoAlD ITNIA BONDAIES EQ. T NE, Librevill3 Pori tf C GO Gentil iz ~ I r N.1',191i NorNo 1 MAJOR ROADS ( NATIONAL CAPITALS *RAILROADS INTERNATIONAL BOUNDARIES RIVERS MAJOR PORTS November 1992 IMAGING Report No: 15550 CM Type: SAR